A Slowdown in the Equities Market… All-Share Index Shed 0.76% Last Week
The NSE ASI’s performance last week indicated a slowdown of the market’s upward trajectory. WoW, the index declined by 0.76% to 38,916.74. Year-to-date, the index is down by 3.36%. The market capitalization declined as well to N20.36tn.
With 42 stocks gaining at price, while 22 stocks fell, investor sentiment weakened last week as market breadth was 1.91x, a 28.41% decline from the previous week’s 2.67x. LINKAGE (41.18%), ROYALEX (37.50%) and GUINNESS (19.67%) were the top market gainers, while DAAR (-16.00%), REGENCY (-12.12%) and FTNCOCOA (-8.70%) topped the losers’ chart.
The volume and value of transactions decreased by 10.65% and 13.0% respectively. Trading in the top three equities Guaranty Trust Bank Plc, Union Bank Nig. Plc and Wema Bank Plc (measured by volume) accounted for 670.354 million shares worth N10.331 billion in 1,990 deals, contributing 46.39% and 54.26% to the total equity turnover volume and value respectively.
Outlook for the week
We expect to see the slight downward trend continue this week, with investor preference for returns available in the bond market.
Nigerian Fixed Income Market
Activity in the bond market was quiet this week as most investors were occupied with the primary market auction. However, movements in yields were mostly mixed, with those at the long end of the curve rising more steadily.
The Central Bank sold N138.72 billion worth of notes against N95.68 billion offered at its NTB auction today. The 364-day notes were over-subscribed by +179.72% while the 91-day notes and 182-day notes were undersubscribed by -5.80% and -27.61% respectively.
The 91-day, 182-day & 364-day notes were allotted at 2.00%, 3.50%, & 8.00% respectively. Compared to the previous auction, rates on the 91-day & 182-day were unchanged while the 364-day paper rose by 100bps.
Outlook for the week
We expect more activity in the FGN Bond market, as trading in equities continues to slow.
