Here’s a quick look at how the market performed over the past week, along with our insights and outlook for the week ahead.
Equities Overview
The Nigerian equities market faced another challenging week, with a 1.16% decline Week on Week (WoW), bringing the index to 95,973.45 points. As a result, market capitalization dipped to ₦55.13 trillion, marking a ₦2.4 billion reduction. This downturn was largely driven by selloffs in key stocks like DANGCEM (-10.00% WoW), TRANSCOHOT (-6.25% WoW), DANGSUGAR (-5.29% WoW), and FBNH (-2.86% WoW), leading to a moderation in the Year-to-Date return to 28.35%.
On Money market and Fixed income
Interbank rates (OPR and O/N) dropped by 652bps and 681bps, closing at 25.78% and 26.17%, respectively. System liquidity remained strong throughout the week due to Remita inflows, coupon payments, and FAAC inflows. Early in the week, the Debt Management Office (DMO) offered ₦190.0 billion across standard maturities. There was strong demand at the auction, with bid-to-offer and bid-to-cover ratios at 2.42x and 1.23x, respectively. The average stop rate slightly decreased to 20.90% from 20.95% in the previous auction.
Stock Recommendations:
This week, we recommend considering investments in stocks such as ACCESSCORP, GTCO, ZENITHBANK, AIRTELAFRI, PRESCO, SEPLAT, NESTLE, UNILEVER, and GUINNESS, among others.
