Q3 2023 NCM Report: Market Maintains Positive Posture as NGXASI Grows by 8.88%, NASD NSI by 8.46% and Mutual Funds NAV by 35.22% in Q3

 Q3 2023 Nigerian Capital Market Service Report

Equities Market Performance Review

Nigerian Equities Market closed the month of July 2023 in the green zone to open Q3 2023 on a bullish note as market sentiment remained positive. This extended market returns by 9.32% In July against the 6.42% uptick recorded in the month of June 2023. The NGXASI firmed up further by +3.44% in August 2023 while the benchmark indicator dipped slightly by -0.25% in September 2023 as FX liquidity pressure persists.

Quarter-on-Quarter, the NGXASI grew by +8.83% in Q3 2023 as against -5.39% drop in Q3 2022. (See table below)

Similarly, the NASD NSI opened Q3 2023 on a positive note as the OTC market index grew by +3.54% in July 2023. The index grew further by +1.94% in the month of August 2023 while similar positive momentum was recorded in the month of September as the index inched up by +2.76% 

Quarter-on-Quarter, the NASD NSI grew by +8.46% in Q3 2023 as against -3.60% decline in Q3 2022

YTD, the NGXASI inched up by +29.52% while the NASD NSI also inched up by +14.94% as of Q3 2023. (See table below)

Mutual Funds Performance Review in Q3 2023

The Nigerian Mutual Funds Market maintained its impressive performance in Q3 2023 as the grand total of all funds grew by +35.22% YoY to N2.03trn as against +11.22% growth in Q1 2023 and +26.42% in Q2 2023.

Nine (9) out of the Eleven (11) mutual funds type closed green while one (1) closed in red. 

Bond/Fixed Income Funds declined by 21.28% YoY in Q3 2023 while Shariah Compliant Funds recorded 134.19% growth to emerge as the best performing fund.

Real Estate Funds recorded maintained its lead from previous quarter to emerge the second best performing fund with 102.88% uptick recorded and closely followed by Dollar funds with 71.09% YoY growth. (See table below)

What to Expect from the Market in Q4 2023?

As market activities continue in the new quarter of 2023, investors and market stakeholders can keep abreast of possible activities that will characterize the Nigerian Capital Market in Q3 2023. 

Below is a list of a few of such activities.

1. The Ellah lakes Plc Rights Issue of 1bn is expected to be open for a maximum of 28 days, and the application will close 0n 22^nd November 2023.
2. Chams Plc to hold a Rights Issue soon.
3. Issuers are expected to file their Q3 2023 Financial Statements on the NGX portal after the 30-day grace period.
4. ETI Plc to audit its Q3 2023 Financial Statements and as such will experience delay in filing.
5. A tier 3 Nigerian Bank is expected to notify the market about a potential merger with an unlisted bank in Nigeria.
6. Two Proshare reports, Online Trading and CEO Remuneration, will be published in Q4 2023 respectively.
7. Some listed entities are expected to hold their Annual General Meetings (AGM) in Q4 2023. An example of this is FMN Plc
8. The CBN MPC Meetings is expected to be held in November 2023
9. The next SEC CMC meeting is expected to be held in November 2023
10. The delisting of Union Bank of Nigeria and Oando Plc may happen soon.
11. The 2023 WACMAC Conference is expected to be held on 25-26 October 2023