Bearish Performance In The Nigerian Bourse, NSE ASI Shed 12bps

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NSE-Brand Spur Nigeria
Nigeria-Stock-Exchange-NSE

The Nigerian equities market closed negative at the end of today’s trading session as the benchmark index declined by 0.12% to close at 39,204.52 points.

This was mainly due to selloffs in bellwether stocks such as ZENITHBANK (-0.83%) and INTBREW (-4.00%). Consequently, the YTD loss worsened to -2.65% as market capitalisation decreased by N24 billion to close at  ₦20.43 trillion.

The sectoral performance weakened as three of the five indices under coverage declined, the Oil & Gas index improved by 0.55% on OANDO (3.18%) while the Industrial index closed flat. The Insurance index, the biggest loser, declined by 1.01% on MANSARD (-5.68%).
The Banking and Consumer Goods indices followed suit, falling by 0.32% and 0.08% on ZENITHBANK (-0.83%) and INTBREW (-4.00%) respectively.

Investor sentiment strengthened in today’s trading session, as market breadth increased to 1.00x from 0.71x. This was illustrated by the advance of 15 stocks, led by REGALINS (8.51%) and UNIVINSURE (5.00%) and the decline of 15 stocks, led by SCOA (-9.72%) and VERITASKAP (-8.70%). Activity level was mixed as total volume declined by 0.53% while the total value increased by 11.59% as investors exchanged about 354.06 million units of shares worth over N3.20 billion.

Bearish Performance In The Nigerian Bourse, NSE ASI Shed 12bps - Brand Spur

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 mixed sentiment across the bond yield curve as 2 of the 4 bond yields under coverage closed lower while the yields on the FGN-JAN-2026 and FGN-JUL-2030 closed flat at 10.57% and 11.56%. The yields on FGN-APR-2023 and FGN-APR-2024 bonds both compressed by 1 bp.

Treasury bill yields for the 91 and 364-day papers closed flat at 3.51% and 6.67% respectively while the yield on 182-day paper compressed by 1bp to close at 4.45%.

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

  • Bearish Performance in Local Bourse, NSE ASI Shed 12bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Parallel Market Reports at N535/$
  • Mixed Performance in African Stocks