Nigerian Bourse Gains N1.33 Trillion to End the Week Bullish

The Nigerian equities market last week recorded a bullish performance as the value of listed stocks appreciated by 3.89% (N1.33 trillion).

The NGX All-share Index & Market Capitalization appreciated by 3.94% and 3.89% to close at 65,033.39 points and N35.40 trillion respectively. Year-to-Date return stood at 26.89%.

Market breadth (a measure of investor sentiment) strengthened at the close of the week at 3.84x from 0.38x.

Seventy-three (73) equities appreciated in price during the week higher than twenty-nine (29) equities in the previous week. Nineteen (19) equities depreciated in price lower than seventy-seven (77) in the previous week, while sixty-four (64) equities remained unchanged, higher than fifty (50) recorded in the previous week.

The activity level was mixed as the total traded shares volume and value changed by -20.28% and 56.19% respectively. A total turnover of 4.182 billion shares worth N99.048 billion in 41,446 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 5.246 billion shares valued at N63.417 billion that exchanged hands last week in 57,234 deals.

Trading in the top three equities namely UBA, FCMB, and JAPAULGOLD (measured by volume) accounted for 1.727 billion shares worth N18.239 billion in 4,707 deals, contributing 41.29% and 18.41% to the total equity turnover volume and value respectively.

Outlook for the Week

We expect the equities market to witness bearish sentiment in the early days of the week, as investors expect the outcome of the MPC ongoing meeting.

Nigerian Fixed Income Market

The bond yield curve exhibited bearish, 1-year, 3 years, 5 years, 10 years, and 30-year bonds declined by -0.21%, -0.17%, -0.07%, -0.18%, and 0.18% to close at 5.05%, 9.22%, 12.43%, 13.42% and 14.12% respectively.

In the Nigerian Treasury Bills Market, the yield on the 91-day, 182-day, and 364-day papers compressed by 0.01% each to close at 6.08%, 5.78%, and 5.97% respectively.

In the Money Market space, the Open Repo (OPR) closes at 21.00%, while Overnight rates close at 21.92% Wow.

Outlook for the week

We expect the yield on fixed-income to advance, especially on long-dated bonds on the back of accelerating inflation.

The Global and African Market

The global market exhibited mixed outings last week.

African Market experienced the same fate. The NGX ASI and EGX 30 closed in the green after adding 3.94% and 1.36%. The JALSH, EGX 30, and KENYA NSE depreciated by -1.36% and -2.88% respectively.

Outlook for the week

We expect mixed sentiments to drive the Global and African markets ahead of Q2 financial releases, and rising inflation in most countries.