Stock Market

Last week, the market lost NGN596.61bn due to selloffs in DANGCEM, BUACEMENT and FBNH, which caused the market to lose 0.95% Week-on-Week (WoW). However, we saw gains in sectors such as Oil and Gas, Insurance and Consumer Goods sectors, as investors bought into tickers such as SEPLAT, NEM and INTBREW respectively. On the flipside, we observed that the Industrial Goods and Banking sectors were dragged by profit taking activities in DANGCEM and FIDELITY respectively. This week, we expect to see some buying interest as investors start positioning themselves in stocks with strong fundamentals ahead of the release of Q3:2024 earnings results. However, this could be offset by attractive yields in the fixed income market.

Fixed Income

Last week, average yields in the secondary fixed-income market went up to 20.88%. This is on the back of similar increases in the secondary NT-bills and FGN Bond markets, where average yields increased to 22.68% and 19.08% respectively. This week, we expect this negative trend to persist, on the back of the expectation of no significant liquidity inflows.

Strategy

Our investment strategy for this week includes buying tickers in the Banking, Oil and Gas and Industrial Goods sectors.

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