Local Equities Market Bleeds as Benchmark Index Drops by 1.66%…

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In the just concluded week, local equities
market shed 1.66% week-on-week as the All
Share Index closed lower at 41,709.09 points amid renewed bearish investor sentiment.

Similarly, sectoral performance was largely bearish as all of the five indices tracked closed in the red.

The NSE Insurance sub-sector led the bottom losers as its index fell by 6.01% to 231.14 points.

Also, the NSE Consumer Goods index, NSE Industrial index, NSE Banking index and the NSE Oil/Gas index moderated by 3.22%, 2.28%, 2.07% and 0.16% to 593.91
points, 414.39 points, 2,038.22 points, and 253.91 points respectively.

Meanwhile, market activity was relatively positive as volume and value of stocks traded rose by 7.37% and 6.44% to 2.76 billion shares and N29.68 billion respectively.

However, the total deals fell by 0.29% to 31,359 deals.
12.50% 10.00% 7.50% 5.00% 2.50% 0.00%
OTC Bond Yields (MTM)

In the new week, we expect local OTC bond prices to appreciate (and yields to decrease), especially for 20-year paper as the yield touched 10%.

In the new week, we expect the local equities market to further trade southwards as investors stay on the sidelines in anticipation of the audited full year 2020 financial results and the announcements of their dividend payments.

More so, we feel that the share prices have rallied to an extent where expected dividend yields are over stretched.