Equities Market Performance Review

Nigerian Equities Market closed the month of July 2022 in the red zone to open Q3 2022 on a bearish note as market sentiment remained negative as against the -2.21% decline recorded in the month of June 2022. The NGXASI dipped further by -1.06% in August 2022 while the benchmark indicator also declined by -1.63% in September 2022. 

Quarter-on-Quarter, the NGXASI declined by -5.39% in Q3 2022 as against +6.10% growth in Q3 2021. See table below

Similarly, the NASD NSI opened Q3 2022 on a positive note as the OTC market index inched up by 2.60% in July 2022. The index erased part of the gain recorded in the month of July as it dipped by 2.27% in August 2022 while it declined further by -3.86% in September 2022.

Quarter-on-Quarter, the NASD NSI dipped by -3.60% in Q3 2022 as against -2.89% decline in Q3 2021

 YTD, the NGXASI inched up by 14.77% while the NASD NSI dipped by 0.95% as of Q3 2022. See table below

FMDQ Bonds and Fixed Income Markets in Q3 2022

A review of the market turnover across various product categories in the FMDQ bonds and fixed income markets reflected significant decline except for the other bonds, which (comprises of agency, sub-national, corporate and supranational bonds), grew by 84.17%.

Money market derivates recorded the highest decline, 65.95%, while five other product categories also declined.

It is important to state that the data only covers till August 2022 to complete the Q3 2022 benchmark of comparison of September 2021. See table below.

Mutual Funds Performance Review in Q3 2022

The performance of the Mutual Funds in the Nigerian Capital Market appears to be not too impressive in Q3 2022 despite the 16.38% growth in the grand total of all funds in the market.  

The inclusion of funds like Infrastructure funds, Dollar Funds and Shariah Compliant Funds boosted the Net Asset Value (NAV) grand total of all funds.

Ethical funds declined by 77.57% QoQ in Q3 2022 and closely followed by Bond/Fixed Income Funds by 41.76% while Money Market Funds grew by 11.27% and closely followed by Equity based funds by 2.40% QoQ. See table below

What to Expect from the Market in Q4 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 Q4 2022. 

Below is a list of a few of such activities.

1. The McNichols Plc Rights Issue of 531.24m ordinary shares will commence in Q4 2022.
2. Fidelity Bank Plc to issue its unissued shares by way of private placements in Q4 2022
3. Geregu Power Plc expected to list on NGX in October 2022.
4. Issuers are expected to hold their Q4 2022 board meetings in October in anticipation of approving and filing their Q3 2022 financial statements and in order to beat the 30-day filing grace period.
5. Two Proshare reports, CEO Remuneration and Online Trading Ranking Report, will be published in October and November 2022 respectively 
6. Proshare is expected to organize a webinar on the Online Trading Ranking Report with a focus on Distributed Ledger Technology (DLT)

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 Q3 2022 Capital Market Service 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] 

Thank you.

For: Analyst Editorial Board

Saheed KIARIBE

Executive Director, Research Services

Chart 1: Capital Market Size by Exchanges – September 2022