The market opened the week with a 0.21% loss which was followed by a loss in all the remaining trading days of the week. Consequently, the All-Share Index (ASI) declined by 2.53% WoW to close at 34,250.74 with market capitalization shedding N463.73bn to settle at N17.90tn. In Summary, the year-to-date (YtD) performance moderated to +27.60%.
Market breadth, a measure of Investors’ sentiment depressed from 0.49x to 0.28x as only 13 stocks advanced while 46 stocks declined last week. FTNCOCOA (+51.72%), UNIONDAC (+16.00%) and OKOMU (+10.00%) were the top market gainers while REGENCY (-16.67%), UPL (-14.29%) and NEIMETH (-12.35%) top the losers chart.
Market activity level was mixed as volume advanced by 35.22% while the value of transaction declined by 17.44%. Trading in JAIZ BANK, ACCESS and ZENITH BANK (measured by volume) accounted for 894.00 million shares worth N7.07 billion in 4,045 deals, contributing 39.47% and 33.72% to the total equity turnover volume and value respectively.
Outlook for the week
We expect to see some mixed activity this week as some investors hunt for bargains and others take profits with new development in the global economy and local fixed income yield influencing the decision.
Fixed Income Market
The bears maintained dominance in the local bond market this week, as investors took profit on some maturities. Average benchmark yields climbed by 71bps to 4.91% buoyed by sell-off at the short, mid and long end of the curve. Notably, Yield on the FGNMAR-2030 advanced by 7.18% followed by the increased yield on longer maturities.
The penultimate NTB primary Market Auction for the year was held last week with N4.40bn, N7.82bn and N38.70bn on offer for the 91-day, 182-day and 364-day maturities respectively. This was followed by a heavy subscription as bid/offer ratio print at 3.75x. Consequently, stop rates closed at 0.01%, 0.60% and 3.20% higher than the last September auction.
Outlook for the week
We expect a similar bearish trend during this week as attention focus on the last bond auction.
Global Equities Market
The US S&P 500 and Dow Jones indices both declined by 0.96% and 0.57% following despite the bullish run witnessed on energy stocks due to increased crude oil prices.
Other global stocks closed negative with concerns about rising numbers of coronavirus cases in key economies and uncertainty surrounding a post-Brexit trade deal and U.S Stimulus Measures. Notably, German Dax and UK FTSE declined by 1.39% and 0.05% while French CAC compressed by 1.81%. However, Japan NIKKEI advanced by 1.06%.
Outlook for the Week
We expect UK post-Brexit arrangements and new development in the vaccine to influence market performance across Europe and America together with progress on the US stimulus measures.
