Losses in DANGSUGAR, SEPLAT, and Others Drive Nigerian Equities to Negative Territory as Market Capitalisation Records 1.20bps Decline.

Trading on the floor of the Nigerian Equities Market depreciated on Friday, March 31, 2023, as twin indicators, The All-share Index & Market Capitalization declined by 1.20%, to close at 54,232.34 points and N29.544 trillion respectively, which brought about 5.82% Year-to-Date decrease in returns.

Profit-taking in large-cap stocks such as DANGSUGAR (-7.10%), SEPLAT (-4.17%), and AIRTELAFRI (-4.50%), among others, contributed largely to the slope experienced in the equities market last week.

Market breadth (a measure of investor sentiment) strengthened in the just concluded week, increasing from 1.04x to 1.23x as 37 stocks appreciated against 30 stocks that depreciated. OANDO and IKEJAHOTEL rose by 34.12% and 18.45% to top the gainer’s chart WoW, respectively, while PRESTIGE and NCR were the top losers, with price depreciation of 13.04% and 9.79%, WoW respectively.

The activity was strengthened as the total trade volume and value increased by 22.54% and 58.64% respectively. A total turnover of 1.69 billion shares worth N11.066 billion in 14019 deals were traded during the week by investors on the floor of the Exchange. Trading in the top three equities, namely Transnational Corporation Plc, Living Trust Mortgage Bank Plc, and Fidelity Bank Plc (measured by volume), accounted for 1.429 billion shares worth N3.461 billion in 1,620 deals, contributing 69.00% and 19.71% 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 bullish sentiment in the bond market as all of the tenor yields under coverage increased, the yields on the 1, 3, 5,10, and 30-year bonds advanced by 247bps, 327bps, 88bps, 6bps, and  47bps WoW, respectively.

There was bullish sentiment in the secondary market for the Nigerian Treasury Bills Market. Consequently, the yields on the 91, 182, and 364-day paper advanced by 113bps, 205bps, and 363bps respectively.

In the Money Market space, the Open Repo (OPR) decreased to 18.50% Wow while overnight rates increased to 18.88% Wow.

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 bullish in the global market as all of the six indices under coverage closed higher WoW.

In the African Market, there was mixed sentiment as three of the four indices under coverage increased WoW. The S’A JALSH, EGX 30,  and KENYA NSE the gainers rose by 1.88%, 5.08%, and 1.65% WoW respectively, while  NGX ASI the loser, fell by 1.20% WoW.

Outlook for the week

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