The Nigerian equities market closed relatively flat at the end of today’s trading session as the benchmark index closed at 39,251.29 points.
Consequently, the YTD loss remained constant at -2.53% as market capitalisation closed flat at ₦20.45 trillion.
The sectoral performance was mixed as two of the five indices under coverage improved, the Banking index declined by 0.31% on ZENITHBANK (-0.21%) while the Industrial and Insurance indices closed flat. The Oil & Gas and Consumer Goods indices, the gainers under coverage, improved by 1.00% and 0.52% on OANDO (6.02%) and INTBREW (7.53%) respectively.
Investor sentiment weakened in today’s trading session, as market breadth decreased to 0.71x from 1.40x. This was illustrated by the advance of 15 stocks, led by UCAP (8.00%) and INTBREW (7.53%) and the decline of 21 stocks, led by CORNERST (-8.77%) and UNIVINSURE (-4.76%). Activity level strengthened as total volume and value increased by 68.73% and 108.11% as investors exchanged about 355.94 million units of shares worth over N2.87 billion.
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We expect bullish momentum to return in the next trading session as the equities market still presents decent opportunities for investors chasing positive real return on investments.
Fixed Income
There was relatively bearish sentiment across the bond yield curve as 2 of the 4 bond yields under coverage closed higher, the yield on FGN-APR-2023 compressed by 2bps while the FGN-APR-2024 closed flat at 9.93%. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bonds increased by 3bps and 5bps respectively.
Treasury bill yields for the 91 and 182-day papers increased by 32bps and 13bps to close at 3.51% and 4.46% respectively while the yield on 364-day paper closed flat at 6.67%.
We expect a further decline in yields in the next trading session on the back of huge demand from investors and the deliberate efforts of the DMO to reduce borrowing costs.
MARKET SNAPSHOT
- Local Bourse closes Flat, NSE ASI remains Constant
- Bearish Sentiment across the Bond Yield Curve
- Bearish Performance in Global Stocks
- Parallel Market Reports at N532/$
- Mixed Performance in African Stocks
