Financial Market Commentary:
Last week, the Nigerian Equities market enjoyed four days of market bullishness. With the NGX ASI touching the forty-eight thousand levels after 2008 market crash. This further signifies an increased market activities, transparency, and liquidity. As a result, the ASI YTD growth rate rose to 12.4%.
Top five market advancers for the week include MEYER (45%), ETERNA (33%), OANDO (21%), GUINNESS (17%) and FTNCOCA (13%). In the top five laggard’s Chart, we have ACADEMY (-18%), JOHN HOLT (-17%), NEIMETH (-13%), CWG (-10.2%), and SCOA (-9.77%).
The local bond market was majorly dominated with bearishness, with average yield curve inching up by 9bps. Also, the Nigerian treasury bills that took place last auction result reported an oversubscription among all tenors. With the 365-day treasury bills stop rate inching up to 4.6% from 4.45% signifying increased government borrowing interest.
Last week, the money market saw an increased market liquidity on the back increased funding pressure. This week, we expect liquidity to flow into the system through FAAC allocations and coupon payments from bond maturities.