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Nigerian Bourse Closes the Week Lower with as the NGX ASI sheds 1.58% WoW.

Nigerian Bourse Closes the Week Lower as the NGX ASI sheds 1.58% WoW.

Local Bourse closed lower last week, as the NGX ASI sheds 1.58% WoW, closing negative in four of the five trading sessions.  Profit-taking in large-cap stocks such as MTNN (-5.00%), GEREGU (-6.50%), and GTCO (-7.20%) dragged the local bourse southwards. Hence, at 54,915.39 points, the equities market’s Year-to-Date return decreased to 7.15% as market capitalization fell by N479 billion to close at N20.92 trillion.

Market breadth (a measure of investor sentiment) weakened in the just concluded week, declining from 0.54x to 0.40x as 47 stocks depreciated against 19 stocks that appreciated. UCAP and LINKASSURE fell by 16.72% and 10.87% to top the losers’ chart WoW, respectively, while PRESTIGE and ENAMELWA were the top gainers, with price appreciation of 9.76% and 9.56%, respectively WoW.

The activity was mixed as the total trade volume and value decreased by 16.62% and 41.45% respectively. A total turnover of 0.85 trillion shares worth N11.84 billion in 18543.00 deals were traded during the week by investors on the floor of the Exchange. Trading in the top three equities, namely Transnational Corporation Plc, Zenith Bank Plc, and Sterling Bank Plc (measured by volume), accounted for 226.004 million shares worth N2.041 billion in 2,613 deals, contributing 26.47% and 17.24% to the total equity turnover volume and value respectively.

Outlook for the week

We expect bullish sentiments to persist amid depressed yields in the fixed-income market.

The Nigerian Fixed Income Market

Last week, there was bearish sentiment in the bond market as three of the tenor yields under coverage inched higher while the yield on the 10 and 30-year bond closed flat. The yields on the 1, 3, and 5-Years bonds advanced by 35bps, 191bps, and 75bps WoW, respectively.

There was mixed sentiment in the secondary market for the Nigerian Treasury Bills Market. Consequently, the yields on the 91, 182, and 364-day paper advanced by 131bps, 35bps and 421bps respectively.

In the Money Market space, the Open Repo (OPR) and Overnight rates increased to 13.25% and 13.80% Wow respectively.

Outlook for the week

We expect market activity in the fixed-income market to be influenced by liquidity levels.

The Global and African market

Investor’s sentiments was bearish in the global market as four of the six indices under coverage closed lower WoW.

In the African Market, there was bearish sentiment as all of the four indices under coverage decreased WoW. The S’A JALSH, EGX 30, NSE, and NGX ASI the losers, fell by 5.14%, 7.73%, 6.56%, 12.28% and 1.58% WoW respectively.

Outlook for the week

Market activity would likely be dictated by the release of economic data in the near term.

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