Monday, January 24, 2022 / 11:27 AM / By Tosin Ige,
Proshare Research / Picture Credit: Nasscom
Being guidance notes around the discussion by Olufemi AWOYEMI,mni;
Chairman of Proshare at the NGX Capital Markets Conference in Transcorp Hilton,
Abuja, Nigeria on the 30th of November, 2021.
The Nigerian capital market started
the year on a mixed bag as the NGX ASI inched up by +5.32%,
while the NASD USI closed negative by -1.04% and
the FMDQ turnover also closed negative by -34.49% M-o-M
in January 2021. Over time, gains in the equity market have been moderated by
yield improvement in the fixed income market, depreciation in the exchange
rate, rising inflation, policies uncertainty, profit-taking by investors, and
poor participation of foreign portfolio investors.
However, the equity market rebounded
in Q3 2021 as the NSEASI ended the period in the positive territory with a +6.10% gain as against -2.91%
loss in Q2 2021 and -3.04% loss in Q1
2021 while the NASD USI closed the third quarter negative with a -2.89% loss as against +1.05%
gain in Q2 2021 and +1.91% gain
recorded in Q1 2021.
There has been considerable yield
improvement in the fixed income and currency market. The yield on the benchmark
10-year FGN bond has increased from 7.3% as of January 2021 to 13.98% at the
end of Q3 2021. The FMDQ market turnover was also up by +94.89% M-o-M and +70.79% Y-o-Y
in September 2021.
On the commodity space, the AFEX
commodity…
