At the end of today’s trading session, the Nigerian equities market closed in green as the benchmark index improved by 1.59% to close at 40,221.17 points. This was mainly due to buy pressures in bellwether stocks such as DANGCEM (+7.28%) and WAPCO (0.66%).
Consequently, the YTD loss declined to -0.12% as market capitalization increased by ₦328 billion to close at ₦20.96 trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined while the Industrial index gained 4.08% on DANGCEM (+7.28%). The Banking index, the biggest loser under coverage, decreased by 0.30% on ZENITHBANK (-0.21%). The Consumer Goods, Oil & Gas and Insurance indices followed suit, falling by 0.13%, 0.12% and 0.03% on NESTLE (-0.60%), OANDO (-0.68%) and MANSARD (-4.12%) respectively.
Investor sentiment weakened in today’s trading session, as market breadth decreased to 1.43x from 1.71x. This was illustrated by the advance of 20 stocks, led by UPL (9.82%) and PHARMDEKO (9.81%) and the decline of 14 stocks, led by CHAMS (-8.70%) and MANSARD (-4.12%). Activity level strengthened as total volume and value improved by 120.65% and 85.25% as investors exchanged about 1046.71 million units of shares worth over N7.42 billion.
We expect bullish momentum to persist 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 flat while each of the yields on the FGN-APR-2023 and FGN-APR-2024 compressed by 1bp. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 10.25% and 12.02% respectively.
Treasury bill yields for the 182 and 364-day papers compressed by 109bps and 1bp to close at 4.11% and 7.49% respectively while the 91-day paper closed flat at 4.14%.
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
- Positive Performance Persists in the Local Bourse, NGX ASI Gains 159bps
- Mixed Sentiment across the Bond Yield Curve
- Bearish Performance in Global Stocks
- Positive Performance in Commodities Market
- Bullish Sentiment in African Stocks
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