Monthly Equities Market Report - February 2023
Global Market Overview
The global equities market sustained its bullish run in February 2023 following easing
inflation in major countries such as the United States, United Kingdom, and the
Eurozone. This precipitated major central banks such as the US Fed, European Central
Bank (ECB) to ease on their levels of interest rate hikes. After four (4) consecutive
75bps hikes as of November 2022, the US Fed only raised interest rates by 50bps in
December 2022, and 25bps in February 2023. In addition, the recent earnings
releases, a positive Q4:2022 GDP, and the acceleration of economic activities in China
influenced the overall rally in the global equities space.
Domestic Market: Sustained Bullish Momentum Amid Domestic Headwinds
The Nigerian equities market sustained its bullish run in the second (2
nd) month of the year amid protracted macro-economic headwinds, aggressive interest rate hike,
Naira scarcity and election concerns. In February 2023, there were improved positive
sentiment in the equities market as the Nigerian bourse gained 15 out of 20 trading
days (vs 12 out of 21 trading days in January 2023) as the NGX ASI settled at
55,806.26pts (highest since June 30, 2008). Consequently, the NGX ASI year-to-date
(YtD) return as of 28th of February 2023 came in at 8.89%. The NGX 30 Index, which
tracks the performance of the top 30 counters in terms of market capitalization and
liquidity on the bourse, mirrored the performance of the NGX ASI
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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