The Nigerian Equities Market: Weekly Report

Equity Market

The Nigerian Equities Market: Weekly Review.

Equity Market

The NGX ASI closed the week in green by 1.39% as it closed positive in 4 of the 5 trading sessions during the week as a result of buy pressures in bellwether stocks such as FBNH (+29.59%) and ETI (+9.52). Consequently, at 41,438.15 points, the equities market’s Year-to-Date return improved to 2.90% as market capitalisation increased by 1.50% to close at N21.62 trillion.

Market breadth (a measure of investor sentiment) strengthened last week, rising from 1.62x to 3.00x as 45 stocks appreciated against 15 stocks that declined. CHAMPION and FBNH topped the market gainers with 49.52% and 29.59% WoW respectively, while LEARNAFRCA and IKEJAHOTEL were the top laggers with declines of 18.71% and 7.89% respectively WoW.

The activity level strengthened as the trade volume and value increased by 30.34% and 44.11% respectively WoW. A total turnover of 2.84 million shares worth N31.65 billion in 23,355 deals were traded during the week by investors on the floor of the Exchange. Trading in the top three equities by volume were FBNH, GTCO and ETI. They accounted for 1.834 billion shares worth N23.372 billion in 5,981 deals; contributing 64.61% and 73.84% to the total equity turnover volume and value respectively.

Equity Market

Outlook for the week

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

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The Nigerian Fixed Income

There was relatively bullish sentiment in the bond market last week as three (3) of the five (5) tenor yields under coverage closed lower while the yields on the 5-Year and 30-Year tenor bonds increased by 20bps and 8bps. The yields on the 1-Year, 3-Year and 10-Year tenor bonds decreased by 8bps, 2bps, and 3bps respectively WoW.

Similarly, the activity in the Nigerian Treasury Bills Market closed bearish as all the five bond yields closed higher.  The yields on the 91, 182 and 364-day papers increased by 39bps, 30bps and 38bps respectively.

In the Money Market space, the Open Buy Back (OBB) and Overnight (O/N) rates increased to 19.50% and 20.00% from 14.00% and 14.50% 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.