The local equities market closed on a positive note last week following gains in bellwether stocks. The market opened the week with a significantly bullish momentum as gains were recorded in all the 5 trading days of the week.
Consequently, the All-Share Index (ASI) advanced by 263bps WoW to settle at 41,176.14 with market capitalization gaining N552.12bn to settle at N21.53tn.
Market breadth, a measure of investors’ sentiment, however, declined from 7.14x to 3.16x as 60 stocks advanced while 19 stocks declined last week.
JAPAULGOLD(+56.70%), MBENEFIT (+50.00%) and ROYALEX(+47.83%) were the top market gainers while CUTIX (-12.92%), DAARCOMM(-10.00%) and CHELLARAM(-9.96%) top the losers’ chart.
Market activity level was positive as volume advanced by 1.77% while value of transaction advanced by 64.72%.
Trading in UPDC Real Estate Investment Trust, Mutual Benefits Assurance Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 1.224 billion shares worth N4.459 billion in 929 deals, contributing 35.52% and 13.63% 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 the sustained low fixed income yield influencing decision.
FIXED INCOME MARKET
The Bond market started the week on a relatively quiet note. Mixed sentiments were witnessed across the different maturities albeit with profit-taking activity particularly on the long tenor maturity as investor sentiment remained weak throughout the week.
At the NTB Primary Market Auction (PMA) held last week, the CBN offer N12.76 bn, N26.60bn and N193.00bn across 91-day, 182-day and 364-day maturities respectively.
However, the subscription was N23.57, N30.63 and N231.93bn indicating a bid/offer ratio of 1.23x. Consequently, the stop rate closed at 0.50%, 1.00% and 1.50% for the 91-day, 182-day and 364-day instruments in that order.
At the secondary market segment, the yield on the 364 days maturities advanced to 0.93% while that of 182-day remained stable at 0.50%
Outlook for the week
We expect a similar trend in the Bond market this week albeit with cherry-picking.
GLOBAL MARKET
The US S&P 500 and Dow Jones indices both declined by -1.48% and -0.91% following renewed concerns on the rising cases of COVID-19. Other global stocks also closed negative amid continued imposition of stricter lockdowns. Notably, German DAX, UK FTSE and French CAC declined by 1.86%, 2.00% and 1.67%.
Outlook for the week
We expect news on US stimulus package by the new administration to buoy market performance this week.
