The NGX ASI closed the week in red by 0.12% as it closed negative in 4 of the 5 trading sessions during the week as a result of sell pressures in bellwether stocks such as TOTAL (-9.97%) and NGXGROUP (-11.88%). Consequently, at 43,199.27 points, the equities market’s Year-to-Date return improved to 7.27% as market capitalisation decreased by 0.13% to close at N22.54 trillion.
Market breadth (a measure of investor sentiment) weakened last week, decreasing from 0.75x to 0.31x as 15 stocks appreciated against 49 stocks that declined. VITAFOAM and ETRANZACT topped the market gainers with 17.11% and 10.00% WoW respectively, while CUTIX and NGXGROUP were the top losers with declines of 42.68% and 11.88% respectively WoW.
The activity level was mixed as the trade volume declined by 5.37% while the total value increased by 33.16% respectively WoW. A total turnover of 1.392 billion shares worth N27.886 billion in 19,990 deals were traded during the week by investors on the floor of the Exchange. Trading in the top three equities by volume were FBNH, GTCO and STERLNBANK. They accounted for 638.319 million shares worth N8.542 billion in 4,116 deals; contributing 45.85% and 30.63% to the total equity turnover volume and value respectively.
Outlook for the week
We expect bullish momentum to return in the coming week as the equities market still presents decent opportunities for investors chasing positive real return on investments.
The Nigerian Fixed Income
There was relatively bullish sentiment in the bond market last week as three (3) of the five (5) tenor yields under coverage closed lower while the yield on the 10 and 30-Year tenor bonds increased by 8bps and 1bp WoW. The yields on the 1, 3, 5-Year tenor bonds declined by 1bp, 88bps and 15bps respectively WoW.
Also, the activity in the Nigerian Treasury Bills Market closed in bullish form as the 182 and 364-day paper declined by 0.01% and 0.27% respectively WoW while the 91-day paper closed flat at 4.04%.
In the Money Market space, the Open Buy Back (OBB) and Overnight (O/N) rates increased to 19.00% and 20.00% from 14.50% and 15.25% respectively WoW.
Outlook for the week
We expect market activity in the fixed income market to be influenced by liquidity levels and foreign investor participation.