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Research

Weekly Market News for Investors in Nigeria

NGX ASI recorded a 0.21% decline as it closed negative in 3 of the 5 trading sessions last week.

The NGX ASI closed the week in red by 0.21% as it closed negative in 3 of the 5 trading sessions during the week. It declined on the back of sell pressures in bellwether stocks such as JBERGER (-9.88%) and MRS (-9.85%). Consequently, at 42,262.85 points, the equities market’s Year-to-Date return declined to 4.95% as market capitalization decreased by 0.23% to close at N22.06trillion.

Market breadth (a measure of investor sentiment) strengthened in the previous week, increasing from 1.14x to 1.32x as 33 stocks appreciated against 25 stocks that declined. MBENEFIT and CHIPLC topped the market gainers with 23.08% and 20.69% WoW respectively, while JBERGER and MRS were the top losers with declines of 9.88% and 9.85% respectively WoW.

The activity level weakened as the trade volume and value declined by 26.73% and 18.75% respectively WoW. A total turnover of 965.061 million shares worth N12.455 billion in 14,802 deals were traded during the week by investors on the floor of the Exchange. Trading in the top three equities by volume were UACN, FBNH and SOVRENINS. They accounted for 378.56 million shares worth N3.27 billion in 1,480 deals; contributing 39.23% and 26.22% to the total equity turnover volume and value respectively.

Outlook for the week

We expect positive performance to return in the coming week as the equities market still presents decent opportunities for investors chasing positive real returns on investments.

The Nigerian Fixed Income

There was bearish sentiment in the bond market last week as three (3) of the five (5) tenor yields under coverage closed higher, the yields on the 1, 10 and 30-Year tenor bonds increased by 26bps, 1bp and 13bps respectively WoW while the 5-Year bond paper closed flat at 11.28%. The yield on the 3-Year tenor bond compressed by 10bps WoW.

On the other hand, the activity in the Nigerian Treasury Bills Market was bullish as the 91, 182 and 364-day paper yields compressed by 0.01%, 0.01% and 0.39%, respectively WoW.

In the Money Market space, the Open Buy Back (OBB) and Overnight (O/N) rates increased to 12.00% and 12.50% from 11.25% and 11.75% 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.

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