Local Bourse Starts the Week in Red as NSEASI Dips by -0.04%

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Local Bourse Kick-Start December on a Positive Note, Gain 0.30% to Sustain Uptrend
Afolabi Sotunde Illustration Naira

The Nigerian equities market closed negative at the end of today’s trading session as the benchmark index declined by 0.04% to close at 39,505.40 points. This was mainly due to selling pressures in bellwether stocks such as ZENITH BANK (-0.61%) and CAP (-3.47%).

Consequently, the YTD loss worsened to -1.90% as market capitalisation decreased by ₦7 billion to close at ₦20.58 trillion.

The sectoral performance weakened as three of the five indices under coverage declined. The Banking index, the biggest loser, weakened by 0.65% on ZENITH BANK (-0.61%). The Oil & Gas and Industrial indices followed suit, falling by 0.27% and 0.09% respectively.

Local Bourse Kick-Start December on a Positive Note, Gain 0.30% to Sustain Uptrend
Afolabi Sotunde Illustration Naira

Conversely, the Insurance and Consumer Goods indices, the gainers under coverage, improved by 0.04% and 0.02% on MBENEFIT (8.82%) and DANGSUGAR (2.57%) respectively.

Investor sentiment strengthened in today’s trading session, as market breadth increased to 1.86x from 1.43x. This was illustrated by the advance of 26 stocks, led by SFSREIT (9.96%) and MRS (9.92%), and the decline of 14 stocks, led by ABCTRANS (-8.83%) and LASACO (-6.67%).

Activity level weakened as total volume and value decreased by 75.22% and 28.25 respectively as investors exchanged about 141.28 million units of shares worth over N1.64 billion.

Fixed Income

There was mixed activity across the bond yield curve as two of the four bond yields under coverage closed flat while the FGN-APR-2023 and FGN-APR-2024 compressed by 1bp each. The yields on FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 11.15% and 12.17% respectively.

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Treasury bill yields for the 91 and 182-day papers increased by 124bps and 21bps to close at 4.26% and 4.40% while the 364-day paper compressed by 1bp to close at 7.93%.

We expect bullish momentum to return in the next trading session as the equities market still presents decent opportunities for investors chasing positive real returns on investments.

MARKET SNAPSHOT

  • Local Bourse Starts the Week in Red, NSE ASI Sheds 8bps
  • Mixed Activity across the Bond Yield Curve
  • Bearish Performance in Global Stocks
  • Parallel Market Reports at N515/$
  • Mixed Sentiment in African Stocks