Monthly Equities Market Report - April 2023
Global Market Overview
The month of April bore witness to a flurry of earnings releases across the global market. Although the banking sector was plagued by negative sentiments arising from the collapse of Silicon Valley Bank and Signature Bank, big banks such as JP Morgan and Bank of America delivered strong performances with YoY growth of 52.40% to USD12.6bn and 16.00% to USD7.6bn, respectively. Meanwhile, the impressive earnings results from the Technology and Consumer Discretionary sectors overshadowed the slowdown in banking. Consequently, the US equities market witnessed an upswing in April compared to March 2023.
Domestic Market: Has the Bullish Trend Run Its Course?
The Nigerian equities market continued its positive trend for the fourth consecutive month, albeit with a decline in year-to-date returns from 7.04% in March 2023 to 2.25% in April 2023. This is attributed to two factors: improved profit-taking activities by investors and the elevated yields in the fixed income market. For context average Fixed Income yields spiked 2.04% from 9.03% in March to 11.07% in April. The equities market was marred by negative sentiments, with the Nigerian bourse gaining in only 8 out of 16 trading days (vs 10 out of 23 trading days in March 2023). Moreover, the average volume and value traded on the NGX declined by 254.08% and 66.18% (MoM), respectively, to NGN1.10mn and NGN5.26bn. Despite this, the NGX ASI settled at 52,403.51pts, while the NGX Premium Index continued to outperform it significantly throughout the month.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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