Market Wraps| Investors trade N3.38 billion worth of shares as NGX Exchange extends gains, T-Bills yield expands 9bps to 11.2% and Bonds yield closes at 14.3%

WED, 26 OCT, 2022-theGBJournal| The local bourse extended the week’s gains as sustained interest in BUACEMENT (+2.6%) drove the All-Share Index 0.2% higher to close at 44,859.78 points.

Consequently, the Month-to-Date and Year-to-Date returns settled at -8.5% and +5.0%, respectively.

The total volume traded declined by 41.3% to 93.51 million units, valued at N3.38 billion, and exchanged in 3,187 deals. GEREGU was the most traded stock by volume and value at 12.79 million units and NGN1.29 billion, respectively.

Analysing by sectors, the Industrial Goods (+1.1%), Insurance (+0.9%), and Oil & Gas (+0.3%) indices advanced, while the Banking (-0.9%) and Consumer Goods (-0.4%) indices declined.

As measured by market breadth, market sentiment was negative (0.7x) as 18 tickers lost relative to 12 gainers. CUTIX (-6.5%) and JAIZBANK (-6.2%) topped the losers’ list, while MULTIVERSE (+10.0%) and RTBRISCOE (+10.0%) recorded the highest gains of the day.

Meanwhile, the Treasury bills secondary market closed on a bearish note, as the average yield expanded by 9bps to 11.2%. Across the curve, the average yield pared at the short (-1bp) end following mild interest on the 15DTM (-1bp) bill but expanded at the long (+26bps) end due to profit-taking on the 323DTM (+188bps) bill. The average yield was unchanged at the mid segment. In the OMO segment, the average yield stayed flat at 10.2%.

Activities in the FGN bond secondary market remained bearish, as the average yield expanded by 2bps to 14.3%. Across the benchmark curve, the average yield inched higher at the short (+2bps) and long (+4bps) ends as investors sold off the FEB-2028 (+14bps) and APR-2037 (+25bps) bonds, respectively. Conversely, the average yield was flat at the mid segment.

The naira was flat at N441.67/USD at the I&E window.

The overnight lending rate was unchanged at 16.5%, as the average system liquidity remained at a net short position, closing at N146.42 billion.

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