Equities Market Performance Review
Nigerian Equities Market closed the month of April 2022 in the green zone to open Q2 2022 on a bullish note as market sentiment turned positive as against the -0.91 decline recorded in the month of March 2022. The NGXASI moved up further by +6.75% in May 2022 while the benchmark indicator dipped by -2.21% in June 2021.
Quarter-on-Quarter, the NGXASI grew by +10.03% in Q2 2022 as against -2.91% decline in Q2 2021.
Similarly, the NASD NSI opened Q2 2022 on a negative note as the OTC market index dipped by -4.29%. The index erased the loss recorded in the month of April 2022 as it Inched up by 11.05% in May 2022 while it declined by -0.88% in June 2022.
Quarter-on-Quarter, the NASD NSI grew by +5.35% in Q2 2022 as against +1.05% growth in Q2 2021
YTD, the NGXASI inched up by 21.31% while the NASD NSI also inched up by 2.74% as of H1 2022
Equities and Fixed Income Trades in Q2 2022
Based on updates from the Nigerian Exchange Ltd, both local and foreign investors on the Nigerian Exchange Limited (NGX) traded N485.4bn worth of equities in Q2 2022. This represents an increase of 40.11% when compared to N346.43bn traded in Q1 2022.
Furthermore, growth in value of equities market traded also reflected in volume as it gained 143.83per cent to 54.27billion in Q2, 2022 from 22.26billion reported in Q1 2022.
Fixed Income traded rose by 38.7 per cent to N1.01trn in Q2 2022 from N728.9bn reported in Q1 2022. Volume of fixed income traded moved to 972,206.00 in Q2 2022 from 688,564 reported in Q1 2022.
In addition, the market capitalisation of fixed income moved from N21.42trillion in Q1 2021 to N22.23trillion in Q2 2022.
What to Expect from the Market in Q3 2022?
As market activities continues in the new quarter of 2022, investors and market stakeholders can keep abreast of possible activities that will characterize the Nigerian Capital Market in Q3 2022.
Below is a list of a few of such activities.
- The Wema Bank N40bn Rights Issue will commence in August 2022.
- Majority of Issuers are expected to hold their Q3 2022 board meetings in July in anticipation of approving and filing their Q2 2022 financial statements and in order to beat the 30-day filing grace period.
- We expect that a few banks will audit their Half Year results. Thus, such firms will eventually delay in filing their results within the 30-day grace period and may extend filing till end of August 2022.
- The NGX is expected to review its Sector Indices which may result in some companies exiting some indices while some may come in.
- With a new CEO at the helms of affairs at NASD, we expect to see some policy direction released to the market.
In this edition of The Nigerian Capital Market Service Report, we continue the updates of our data section with latest figures on Economic indicators & Upcoming Events in the market and economy. This is to ensure that we deliver a comprehensive capital market service report that helps cover and track innovations, developments as well as service issues in the market effectively.
In all, the Q2 2022 SSS Quality Report is a snapshot and aide memoire of developments in our market - tracking milestones that the investing public should be aware of. Do feel free to share your opinions/observations and feedback with us vide [email protected]
For: Analyst Editorial Board
Executive Director, Research Services
Chart 1: Capital Market Size by Exchanges – June 2022