Nigerian Equities Market Point Southwards as Profit-taking Persist,  NGX All-Share Index Lost 0.31%

The Nigerian Equities Market closed in the red on Thursday as investors continue to harvest accumulated interest in some large-cap stocks. The NGX All-Share Index went down by 31bps to close at 68,082.11 points from 68,286.28 points. The bearish outing was partly attributed to profit-taking in some bellwether stocks such as DANGSUGAR (-3.98%) and DANGCEM (-1.35%). Recall that the companies maintain about N809 billion and N4.9 trillion Market Capitalization respectively. Consequently, YTD returns declined to 32.84% from 33.22%. Market Capitalization lost N91.74 billion to close at N37.26 trillion.

OANDO recorded over 91.635 million shares worth N768.965 million to top most traded stocks on Thursday. It was seconded by OMATEK which traded over 29.972 million shares, worth N19.207 million. The third place was occupied by DANGSUGAR which traded 23.393 million shares worth N1.48 billion.

Investors’ sentiment strengthened as the market breadth closed at 1.04x from 0.96x. This was accounted for by the appreciation in the share prices of 26 stocks, led by BETAGLAS (9.97%) and CADBURY (9.86%), and the depreciation in share prices of 25 stocks, led by MORISON (-9.89%) and COURTVILLE (-7.69%). Investors exchanged about 378.09 million shares worth N8.37 billion in 8,106 deals, lower than 557.85 million shares worth NN10.21 billion in 9,818 deals traded in the previous day.

The Industrial sector lost -0.71% to top the losers’ chart, followed by the Consumer Goods Index which declined -0.65%. The Oil & Gas, and Insurance Indices lost -0.12% and -0.03% respectively. While the Banking Index added 0.10%.

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 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 investors anticipate more rate hikes as MPC meet this month.

• Nigerian Equities Market Closed Bearish, NGX All-Share Index Down 0.31%.
• There was Quiet Outing Across the Bond Yield Curves 
• Mixed Performance in Global Stocks
• Brent Crude Closed  @ $90.61/barrel
• African Stock Markets exhibited Mixed Performace
• Naira Closed  in the Parallel Market @920/$