Sustained buy-interest lifts the domestic Bourse last week, as the NGX ASI gain 5.37% WoW, closing positive in all of four trading sessions. Buy-interest in large-cap stocks such as CONOIL (+45.78%), ETERNA (+32.14%), and JAIZBANK (+30.00%) sustained positive performance. Hence, at 55,820.50 points the equities market Year-to-Date return increased to 8.92% as market capitalization appreciated by 537billion to close at 30.40trillion
Market breadth (a measure of investor sentiment) strengthened in the just concluded week increasing from 2.86x to 2.87x, as 66 stocks appreciated against 23 stocks that depreciated in share prices. CONOIL and ETERNA rose by 45.78% and 32.14% to top the gainer’s chart WoW respectively, while TANTALIZER and CHIPLC led the top losers, falling by 16.00% and 11.48% WoW respectively.
The activity level strengthened as the total traded shares volume and value increased by 31.74% and 37.59%. A total turnover of 2.59bn shares worth N46.64bn in 35122.00 deals were traded last week.
Trading in the top three equities namely Access Holding Plc, United Bank for Africa Plc, and FBN Holdings (measured by volume) accounted for 915.908 million shares worth N10.916billion in 6,575 deals, contributing 35.42% and 23.40% to the total equity turnover volume and value respectively.
We expect the equities market to moderate as investors seek shares of highly capitalized and defensive stocks to balance portfolios, amid rate hikes.
The Bond market experienced mixed sentiment, as two of the five tenor yields under coverage advanced. While the yield on the 3-year bond closed flat. The yields on the 1 and 10-year bond advanced by 16bps and 1bp Wow respectively. Conversely, the yields on 5 and 30-year bond compressed by 20bps and 8bps Wow respectively.
In the secondary market, the Nigerian Treasury Bills Market closed bullish as the yields on the 182 and 364-day papers, compressed by 95bp and 18bps to close at 5.20 and 7.23 respectively. While the yield on the 91-day paper closed flat.
We expect the Fixed Income Market to trade higher this week amid rate hikes.
Global and African Market
In the African Market, there was bullish sentiment as all of the four indices under our coverage appreciated WoW. The KENYA NSE, NGX ASI, EGX 30 and S’A JALSH rose by 7.32%, 5.37%, 2.87% and 0.57% Wow respectively.
Outlook for the week
We expect Market activities to continue bullish on the back of Senate approval to raise the debt ceiling and also on improving global economic activities.