May 24, 2023/Cordros Report
EQUITIES
The domestic equities market sustained the week’s bullish momentum following bargain hunting in NESTLE (+10.0%). Accordingly, the NGX ASI closed 0.6% higher to 52,927.60 points, with the Month-to-Date and Year-to-Date returns settling at +1.0% and +3.3%, respectively.
The total volume traded increased by 29.7% to 455.18 million units, valued at NGN7.83 billion, and exchanged in 6,635 deals. ACCESSCORP was the most traded stock by volume at 69.19 million units, while SEPLAT was the most traded stock by value at NGN1.84 billion.
Analysing by sectors, the Oil & Gas (+2.5%), Consumer Goods (+2.1%), Banking (+1.1%) and Industrial Goods (+0.2%) indices advanced, while the Insurance (-0.1%) index was the sole loser of the day.
As measured by market breadth, market sentiment was positive (2.1x), as 36 tickers gained relative to 17 losers. NESTLE (+10.0%) and TRIPPLEG (+9.9%) topped the gainers’ list, while CHELLARAM (-9.8%) and MCNICHOLS (-9.6%) recorded the highest losses of the day.
CURRENCY
The naira appreciated by 0.2% to NGN463.33/USD at the I&E window.
MONEY MARKET AND FIXED INCOME
The overnight lending rate contracted by 38bps to 11.1%, in the absence of any significant funding pressure on the system.
Trading in the Nigerian Treasury bills secondary market was quiet, as market participants anticipated the result of today’s PMA. Thus, the average yield was flat at 6.8%.
Activities in the FGN bonds secondary market were mixed, although with a bearish tilt, as the average yield inched higher by 1bp to 14.0%. Across the benchmark curve, the average yield contracted at the short (-2bps) end due to buying interest on the JAN-2026 (-7bps) bond but expanded at the long (+3bps) end as investors sold off the JAN-2042 (+12bps) bond. Elsewhere, the average yield closed flat at the mid segment.
