Nigeria Equities Market last week extends its bullish run as the NGX ASI gains 0.20% WoW, closing positive in one of the five trading sessions. Bargain-hunting in large-cap stocks such as MANSARD (+25.39%), ETERNA (+45.41%), and JAPAULGOLD (+23.08%) was responsible for the positive performance. Hence, at 55,930.97 points the equities market Year-to-Date return increased to 9.13% as market capitalization appreciated by 20 million to close at 30.46trillion
Market breadth (a measure of investor sentiment) weakened in the just concluded week decreasing from 2.87x to 1.93x, as 27 stocks depreciated against 52 stocks that appreciated in share prices. JOHNHOLT and RTBRISCOE fell by 26.70% and 10.53% to top the losers’ chart WoW respectively, while ETERNA and UNITYBNK led the top gainers, rising by 45.41% and 44.00% WoW respectively.
The activity level weakened as the total traded shares volume and value decreased by 15.31% and 1.44%. A total turnover of 2.19bn shares worth N45.97bn in 31655.00 deals were traded last week.
Trading in the top three equities namely United Bank for Africa Plc, FCMB Group Plc, and NPF Microfinance Bank Plc (measured by volume) accounted for 696.244 million shares worth N4.019 billion in 2,398 deals, contributing 31.70% and 8.74% to the total equity turnover volume and value respectively
We expect the equities market to moderate, driven by the Oil & Gas sector on the back of the rising energy prices and the Banking sector.
The Nigerian Fixed Income Market
The Bond market experienced bullish sentiment, as four of the five tenor yields under coverage compressed. The yields on the 1, 3, 5, and 10-year bonds compressed by 1bp, 30bps, 22bps, and 14bps Wow respectively. Conversely, the yield on the 30-year bond advanced by 4bps Wow.
In the secondary market, the Nigerian Treasury Bills Market closed bullish as the yields on the 91 and 364-day papers, compressed by 102bps and 10bps to close at 5.80 and 7.22 respectively. While the yield on the 182-day paper advanced by 60bps.
We expect the Fixed Income Market to lip following investors’ quest to diversify portfolios and rebounding investors’ confidence
The Global and African Market
In the African Market, there was mixed sentiment as two of the four indices under our coverage appreciated WoW. The KENYA NSE and NGX ASI, rose by 0.20% and 0.70% Wow respectively. Conversely, the S’A JALSH and EGX30, the laggards fell by 0.08% and 0.07% Wow respectively.
Outlook for the week
We expect Market activities to moderate on the back of Senate approval to raise the debt ceiling and on improving global economic activities.