Trading on the floor of the Nigerian Equities Market last week closed positive, as the All-share Index & Market Capitalization appreciated by 34bps and 0.36 percent to close at 59,206.63 points and N32.24 trillion. Year-to-Date return stood at 15.48%.
Market breadth (a measure of investor sentiment) weakened in the just concluded week by -44.79% to close at 1.77x, as 35 stocks depreciated against 62 stocks that appreciated in share prices. JAIZBANK and SECUREELEC went down by 18.97% and 17.39% to top the losers’ chart WoW, respectively, while SKYAVN and FTNCOCOA were the top gainers, with price appreciation of 44.53% and 40.74%, WoW respectively.
The activity level weakened as the total traded shares volume and value decreased by 21.10% and 32.47% respectively. A total turnover of 3.369 billion shares worth N41.986 billion in 39,764 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 4.276 billion shares valued at N62.176 billion that exchanged hands last week in 44,344 deals.
Trading in the top three equities namely Universal Insurance Plc, United Bank for Africa Plc, and Guaranty Trust Holding Company Plc (measured by volume) accounted for 865.658 million shares worth N12.138 billion in 4,786 deals, contributing 25.70% and 28.91% to the total equity turnover volume and value respectively.
Outlook for the week
We expect bullish sentiment to continue on the back of increased liquidity as the CBN removed limits on dollar transactions.
The Nigerian Fixed Income Market
There was mixed sentiment across the bond yield curves last week. The yield on the 1-year and 10-year papers closed flat at 7.10% and 14.61% respectively, while the 3-year bond appreciated by 0.20% to close at 12.20%. The yield on 5-year and 30-year bonds compressed by 0.08% each.
There was mixed sentiment in the secondary market for the Nigerian Treasury Bills also. While the yield on the 91-day appreciated by 161bps, the yield on the 182-day and the 364-day papers declined by 1bp each.
We expect a decline in fixed-income yields, especially on long-dated bonds, as inflationary pressure continues on the back of rising costs.
The Global and African Market
The global market exhibited a negative outing last week as all six indices under coverage closed the week in the red.
African Market experienced mixed fate when two of the four indices under coverage increased, while two also decreased WoW. The EGX 30 and S’A JALSH went down by 0.94%, and 5.25% respectively, while NGX ASI and KENYA NSE, rose by 0.34% and 6.87% WoW, respectively.
Outlook for the week
Market activities would likely trade mixed this week, ahead of Fed’s July meeting and anticipated rate hikes to further contend with inflation.