Bargain-Hunting in FTNCOCOA, RTBRISCOE, and TRANSCORP Lifts NGX by 1.51% WoW.

The Local Bourse, last week, appreciated as the NGX ASI gain 1.51% WoW, closing positive in four of five trading sessions. Bargain-hunting in large-cap stocks such as FTNCOCOA (+54.55%), RTBRISCOE (+40.74%), and TRANSCORP (+16.29%) sustained positive performance. Hence, at 52,973.88 points the equities market Year-to-Date return increased to 3.36% as market capitalization appreciated by 151billion to close at 28.845trillion

Market breadth (a measure of investor sentiment) strengthened in the just concluded week increasing from 1.63x to 2.86x, as 60 stocks appreciated against 21 stocks that depreciated in share prices.  FTNCOCOA and RTBRISCOE rose by 54.55% and 40.74% to top the gainer’s chart WoW respectively, while SOVEREIGN and CHELLARAM led the top losers, falling by 20.00% and 18.78% WoW respectively.

The activity level was mixed as the total traded shares volume decreased by 35.19%, while the total traded shares value increased by 0.81%. A total turnover of 1.96bn shares worth N33.90bn in 30827.00 deals were traded last week.

Trading in the top three equities namely United Bank for Africa Plc, Access Holdings Plc and Zenith Bank Plc (measured by volume) accounted for 800.611 million shares worth N11.751billion in 7,351 deals, contributing 40.78% and 34.66% to the total equity turnover volume and value respectively.

Outlook for the week

We expect the equities market to moderate as investors seek shares of highly capitalized stocks to balance portfolios amid rate hikes.

The Nigerian Fixed Income Market.

The Bond market experienced bullish sentiment, as four of the five tenor yields under coverage compressed. While the yield on the 10-year bond closed flat.  The yields on the 1, 3, 5, and 30-year bonds compressed by 296bps, 23bps, 2bps and 11bps WoW respectively.

In the secondary market, the Nigerian Treasury Bills Market closed bullish as the yields on the 91 and 364-day papers, compressed by 1bp and 10bps to close at 5.51 and 7.41 respectively. While the yield on the 182-day paper closed flat.

 In the Money Market space, the Open Repo (OPR) and Overnight (ON) rates decreased to 12.75 and 13.25 respectively.

Outlook for the week

We expect the Fixed Income Market to trade higher this week amid rate hikes.

The Global and African market

The Global Market experienced mixed sentiments last week as three of the six indices under coverage appreciated WoW.

In the African Market, there was mixed sentiment as two of the four indices under our coverage appreciated WoW. The NGX ASI and EGX 30, the gainers, rose by 1.51% and 1.78% Wow respectively. While the S’A JALSH and KENYA NSE, the laggards, fell by 2.00% and 0.60% WoW respectively

Outlook for the week

We expect activities to rebound on improving global economic activities, and expected positive outcomes in the U.S. debt ceiling saga.