March 20, 2023/Cordros Report
The domestic equities market resumed the week’s trading on a sour note, as profit-taking activities in STANBIC (-8.5%) and NB (-3.1%) undermined market performance. As a result, the All-Share Index declined by 0.1% to 54,886.04 points, with the Month-to-Date and Year-to-Date returns settling at -1.6% and +7.1%, respectively.
The total volume traded increased significantly by 646.5% to 1.17 billion units, valued at NGN2.88 billion, and exchanged in 3,066 deals. NEIMETH was the most traded stock by volume and value at 1.07 billion units and NGN1.58 billion, respectively.
Analysing by sectors, the Banking (+1.3%), and Industrial Goods (+0.1%) indices recorded gains, while the Insurance (-0.5%) and Consumer Goods (-0.4%) indices printed losses. On the other hand, the Oil & Gas index closed flat.
As measured by market breadth, market sentiment was positive (1.4x), as 19 tickers gained relative to 14 losers. ACCESSCORP (+7.1%) and CUTIX (+6.0%) topped the gainers’ list, while IKEJAHOTEL (-9.5%) and WAPIC (-9.5%) recorded the highest losses of the day.
The naira appreciated by 0.1% to NGN461.50/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 110bps to 12.7%, following the inflow from FGN bonds coupon payment (NGN57.42 billion).
Activities in the NTB secondary market were muted, as the average yield closed flat at 5.4%. Similarly, the average yield was flat at 3.0% in the OMO segment.
The FGN bond secondary market traded with mixed sentiments, albeit with a bullish bias, as the average yield declined by 1bp to 13.0%. Across the benchmark curve, the average yield pared at the short (-1bp) and long (-1bp) ends as investors demanded the MAR-2024 (-5bps) and APR-2037 (-7bps) bonds, respectively. Meanwhile, the average yield closed flat at the mid-segment.