Equities Market Extend Decline As Banking Stock Tumbles, NGX Shed 1.24%

Equities Market Extend Decline As Banking Stock Tumbles, NGX Shed 1.24%

Nigerian Equities Market opened the week in the red as Banking Stocks slide backward. The NGX All-Share Index depreciated marginally by -1.24% to close at 67,296.18 points from 68,143.34 points. The bearish outing was as a result of profit-taking in some large-cap stocks in the Banking sector, such as ACCESSCORP (-8.57%), GTB (-8.62), UBA (-9.18), ZENITH (-5.82) and DANGSUGAR (-9.98). Consequently, YTD returns declined to 331.31%. Market Capitalization closed at N36.83 trillion.

UBA recorded over 73.932 million shares worth N1.049 billion to top most traded stocks on Monday. It was seconded by ACCESSCORP which traded over 57.669 million shares, worth N957.32 million. The third place was occupied by TRANSCORP which traded 52.724 million shares worth N331.53 million.

Investors’ sentiment weakened as the market breadth closed at 0.37 from 0.91x. This was accounted for by the depreciation in the share prices of 43 stocks, led by NSLTECH (-10.00%) and NASCON (-10.00%), and the appreciation in share prices of 16 stocks, led by NNFM (9.96%) and OANDO (9.74%). Investors exchanged about 520.13 million shares worth N8.33 billion in 9,914 deals.

The Banking sector which lost -6.11% led decliners chart, followed by the Insurance Index which declined by -2.07%. The Consumer Goods and Oil & Gas Indices went down by -1.45% and -0.21% respectively, while Industrial Index advanced marginally by 0.21%.

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 mixed. While the FGN 2 year compressed -0.07% to close at 11.30%, 5 year and 10 year FGN bonds advanced 0.15% and 0.50% to close at 13.90% and 14.85% respectively. FGN 3 year Bond closed flat at 13.00%.

The yields on the 182 day paper and 364 day paper closed at 4.46% and 6.80% 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 Bearish, NGX All-Share Index Down 1.24%.
• There was Mixed Outing Across the Bond Yield Curves 
• Bullish Performance in Global Stocks
• Brent Crude Closed  @ $91.01/barrel
• African Stock Markets exhibited Mixed Performance
• Naira Depreciated  in the Parallel Market @925/$