Weekly Market Update

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The market opened the week with a loss of 0.22% on Monday which was followed by mixed performance in the remaining four trading days of the week. Consequently, the All-Share Index (ASI) and market capitalization declined by 0.69% WoW to settle at 38,382.39 and N20.08tn respectively. Year-to-date, the NSE ASI has declined by 4.69%. With gains in 33 stocks and losses in 28 stocks, market breath printed at 1.32x indicating stronger sentiments than the previous week, where market breadth was 0.92. ETERNA (20.78%), SFS REIT (9.94%) and FLOURMILLS (9.73%) were the top market gainers, while NEIMETH (-14.83%), AFRIPRUD (-10.08%) and NCR (-9.71%) topped the losers’ chart. Market activity level was mixed as the volume of transactions increased by 39.29% and value of transactions declined by 18.10% respectively. Trading in the top three equities Unity Bank Plc, Guaranty Trust Plc and Multiverse Mining and Exploration Plc (measured by volume) accounted for 1.471 billion shares worth N7.114 billion in 2,317 deals, contributing 62.82% and 36.91% to the total equity turnover volume and value respectively.

Outlook for the Week

We expect to see similar bearish sentiments this week with upward movement in fixed income yields pressuring market performance.

Nigerian Fixed Income Market

The Fixed Income Market remained bearish, following heavy selloffs seen across the markets in response to expectations of increased yields across the curve. Consequently, average yield in the fixed income market spiked by 52bps to close the week at 6.5% from 6.0% in the prior week. Market players flooded the NTB secondary market with offers in the expectation of better rates at the scheduled Primary Market Auction (PMA) in the week. Thus, yields on the average across the NTB market spiked by 78bps to 3.5%, from 2.7% in the prior week.

Outlook for the Week

We expect activity to remain relatively quiet next week albeit with improved participation on the back of the rise in yields.

Nigerian Fixed Income Market

The Fixed Income Market remained bearish, following heavy selloffs seen across the markets in response to expectations of increased yields across the curve. Consequently, average yield in the fixed income market spiked by 52bps to close the week at 6.5% from 6.0% in the prior week. Market players flooded the NTB secondary market with offers in the expectation of better rates at the scheduled Primary Market Auction (PMA) in the week. Thus, yields on the average across the NTB market spiked by 78bps to 3.5%, from 2.7% in the prior week.

Outlook for the Week

We expect activity to remain relatively quiet next week albeit with improved participation on the back of the rise in yields.

Global Market
Major global indices had mixed performances this week. The US S&P 500 declined by 0.67%, while Dow Jones index both went up by 0.44%. The NASDAQ index declined by 1.37%. The UK FTSE index lost 0.52%, while the German DAX, and Japan Nikkei indices gained 0.93% and 0.25%

Outlook for the Week
We expect an extension of the positive momentum this week as funds from the stimulus bills are expected to flow into the equities market.

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