Nigerian Bourse Bounces Back After Days Decline, NGX-ASI Up 0.98%

Nigerian Equities Market recovered from two consecutive declines in the new week . The NGX All-Share Index advanced 98bps to close at 67,414.40 points from 66,760.20 points. The bullish performance was due to buy-sentiment in some blue-chip stocks, especially, in the Banking Sector, such as ACCESSCORP (9.97%), GTB (6.00%), UBA (9.78). Consequently, YTD returns closed at 31.54%. Market Capitalization closed at N36.90 trillion.

OANDO recorded 143.445 million shares worth N1.39 billion to top most traded stocks on Wednesday. It was seconded by ACCESSCORP which traded over 63.556 million shares, worth N1.07 billion. The third place was occupied by FIDELITYBK which traded 39.553 million shares worth N313.78 million.

Investors’ sentiment improved as the market breadth closed at 1.48x from 0.90x. This was illustrated by appreciation in the share prices of 34 stocks, led by UCAP (10.00%) and NAHCO (10.00%), and depreciation in share prices of 23 stocks,

led by COURTVILLE (-10.00%) and ABCTRANS (-9.80%). Investors exchanged about 569.63 million shares worth N8.70 billion in 8,404 deals.

The Banking sector gained 4.58% to lead the gainers chart, followed by the Insurance Index which appreciated by 2.27%. The Consumer Goods Index added 1.27%. On the reverse side,  the Oil & Gas and Industrial Indices went down by -0.12% and -0.03% respectively.

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 flat. The FGN 2 year, 3 year, 5 year and 10 year closed at 11.29%, 13.00%, 13.90%, and 14.85% respectively.

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.