The Nigerian Equities market last week closed higher, as the NGX ASI gained 2.04% WoW, closing positive in all trading sessions. Buy-interest in large-cap stocks such as DANGSUGAR (+14.04%), BUAFOOD (+11.76%), and TRANSCORP (+14.69%) boosted the performance of the domestic bourse. Hence, at 52,403.51 points the equities market’s Year-to-Date return increased to 2.25% as market capitalization appreciated by 2.05 billion to close at 28.53 trillion.
Market breadth (a measure of investor sentiment) strengthened in the just concluded week, increasing from 1.13x to 2.88x, as 49 stocks appreciated against 17 stocks that depreciated in share prices. HONYFLOUR and CADBURY rose by 34.91% and 32.35% to top the gainers chart Wow respectively, while NB and ROYALEX led the top losers, with price depreciation of 11.48% and 11.11% Wow respectively.
The activity level strengthened as the total traded shares volume and value increased by 257.88% and 277.77% respectively. A total turnover of 14.03bn shares worth N59.01bn in 24048.00 deals were traded last week against 3.92 billion shares worth N15.62 billion in 16856.00 deals that exchanged hands the previous week.
Trading in the top three equities namely Transnational Corporation Plc, Access Holdings Plc, and Fidelity Bank Plc (measured by volume) accounted for 13.116 billion shares worth N47.928 billion in 6,614 deals, contributing 93.49% and 81.22% to the total equity turnover volume and value respectively.
Outlook for the week
We expect an uptick in the equities market in response to increased liquidity, and good Q1 financials.
The Nigerian Fixed Income Market.
There was a quiet outing in the Fixed Income Market last week, as three of the tenor yields under coverage closed flat, while the yields on the 3 and 30-year bonds compressed by 111bps and 23bps WoW respectively. The yields on the 1, 5, and 10-year bonds closed flat.
In the secondary market, the Nigerian Treasury Bills Market closed the week bullish as the yields on the 91-day, 182-day, and 364-day paper, compressed by 1bp, 191bps, and 409bps, to close at 5.53, 6.24, and 8.82 respectively.
In the Money Market space, the Open Repo (OPR) and Overnight (ON) rates decreased to 12.62% and 13.12% Wow respectively.
Outlook for the week
We expect rates to trade lower this week as investors pivot towards equities and high external interest rates.