Market Last Week (Our Observations)

The local bourse reversed previous week’s bullish performance as selloff on the most capitalized stock on the NGX – AIRTELAF (-27.1%) – weighed on the benchmark index. Consequently, the NGX-ASI dipped 6.7% w/w to 44,396.73 points, YTD return moderated to 3.9% while market capitalisation decreased by ₦1.7tn to ₦24.2tn. 

Performance across sectors was bearish as 4 of 6 indices under our coverage closed in the red. The AFR-ICT index led laggards, down 17.7% w/w. Trailing, the Insurance, Oil & Gas and Consumer Goods indices shed 3.7%, 1.5% and 0.9% w/w respectively. Conversely, the Industrial Goods and Banking indices rose 3.2% and 1.2% w/w. 

The top outperforming stocks for last week were ACADEMY (+11.5%), FIDELITY (+10.1%) and UCAP (+10.1%) while the top underperforming stocks were AIRTELAF (-27.1%), NEM (-10.0%), and BETAGLAS (-10.0%).

Market This Week (Our Expectations)

The Afrinvestor weekly sentiment stood at 3.3x from 2.8x previously. 

This week, we anticipate the bearish sentiment would linger as investors position in the fixed income space given the spurring yield environment, especially after last week’s bond auction.

NB: Rates on ₦100M and above are negotiable and all rates are valid ONLY for funds received on/before the 31st of October, 2022.