Bears Dominated Proceedings in the Equities Market this Week

Naira Gains against the USD at the Bureau De Change, Parallel (“black”) Markets Brandspurng
Afolabi Sotunde Illustration Naira

Equities market closed the week on a bearish note with selloffs witnessed across major tickers. The benchmark All Share Index (ASI) declined by 24bps to close at 41,001.99 with market capitalization losing N50.83bn to settle at N21.45tn. In summary, the Year-to-Date (YtD) performance moderated to 1.82%.

Performance across sectors was bearish with all the sectors under coverage closing in the negative region.

Bears Dominated Proceedings in the Equities Market this Week Brandspurng

The Insurance, banking and consumer goods indices went down by 7.93%, 0.17% and 0.30% due to negative sentiments in MBENEFIT (-10.00%), NIGERIN (-10.00%), UBA(-2.79%) and PZ(-1.75%). Similarly, the industrial and oil & gas indices declined by 0.50% and 0.29% on the back of selloffs in WAPCO(-6.98%) and JAPAULGOLD (-9.52%).

Investors’ sentiment was also negative as 21 stocks advanced while 33 stocks declined to indicate a 0.64x market breadth.  Market activity level slows down as both volume and value of transaction declined by 47.26% and 20.72% respectively.

Fixed Income Market

The bond market continued on a muted note with yield remaining stable across different maturities. Notably, the yield on the FGN-JUL-2030 closed at 8.38.

Treasury bills market traded on a mixed note as yield advanced to 0.30% and 1.17% on the 91-day and 364-day maturities while that of 180-day maturities remained stable at 0.45% OBB and OVN rate increases by 9.00% and 9.42% to settle at 10.00% and 10.50% respectively.

Market Snapshot

  • Bears Dominated Proceedings in the Equities Market…ASI lost 42bps this week
  • The bond market traded on a muted note as yield maintain stability across maturities
  • U.S. Stocks Pare Losses on Solid Economic Data
  • Oil Tumbles With Spread of Demand Pessimism and Firmer Dollar
  • Naira lost N2 against the USD at the  parallel market to close at N477/$