Local Bourse Sustains Bullish Run as Bargain-Hunting in DANGSUGAR, BUAFOODS Stocks Persist,  NGX All-Share Index Gained 8bps

Bullish trek in the Nigerian Equities Market continued on Wednesday as Consumer Goods Stocks drag market to a positive close. The NGX All-Share Index appreciated marginally by 0.08% to close at 68,334.68 points from 68,279.14 points. The positive performance was attached to buy-sentiment in some large-cap stocks in the Consumer Goods Sector, such as DANGSUGAR (2.78%) and BUAFOODS (2.78%). Consequently, YTD returns rose to 33.33% from 33.22% Market Capitalization added N30.40 billion to close at N37.40 trillion from N37.37 trillion.

UBA recorded over 62.840 million shares worth N943.81 million to top most traded stocks on Wednesday. It was seconded by OANDO which traded over 61.258 million shares, worth N409.75 million. The third place was occupied by FIDELTY which traded 55.571 million shares worth N464.76 million.

Investors’ sentiment weakened as the market breadth closed at 0.96x from 2.1x. This was accounted for by the depreciation in the share prices of 31 stocks, led by NSLTECH (-10.00%) and CHELLARAM (-9.80%), and the appreciation in share prices of 30 stocks, led by MULTIVERSE (10.00%) and OMATEK (10.00%). Investors exchanged about 557.85 million shares worth NN10.21 billion in 9,818 deals, lower than 845.68 million shares worth N13.04 billion in 11,934 deals that exchanged hands the previous day. The Consumer Goods sector which added 1.98% led gainers chart, followed by the Industrial Index which appreciated marginally by 0.03%. The Banking, and Insurance Indices lost -0.60% and -0.11% respectively, while the Industrial sector closed flat.

We expect the Equities Market to close the month of September in the positive territory as investors’ confidence continue to improve.

The Fixed Income Market

The Fixed Income Market closed quiet. The FGN 2 year,  3 year, 5 year and 10 year FGN bonds closed flat at 11.37%, 13.00%, 13.75%, and 14.35% respectively.

The yields on the 182 day paper and 364 day paper closed at 4.75% and 7.40% respectively.

We expect yield to rise on the longer end of the curve as a result of rising rates, and reduce on the shorter end as maturity period draws closer.

• Nigerian Equities Market Closed Bullish, NGX All-Share Index Up 0.08%.
• There was Quiet Outing Across the Bond Yield Curves 
• Bearish Performance in Global Stocks
• Brent Crude Closed  @ $89.83/barrel
• African Stock Markets exhibited Mixed Performace
• Naira Appreciated  in the Parallel Market @920/$