Local Bourse Starts the Week in Green, NGX ASI Gains 293bps
The Nigerian equities market closed positive at the end of today’s session as the benchmark index improved by 2.93% to close at 43,246.87 points.
This was mainly due to buy pressures in bellwether stocks such as AIRTELAFRI (+10.00%) and MTNN (+9.62%). Consequently, the YTD return improved to 7.39% as market capitalisation increased by ₦643.13 billion to close at ₦22.57trillion.
The sectoral performance marginally weakened as three of the five indices under coverage improved. The Insurance index, the biggest loser, decreased by 1.43% on CUSTODIAN (-9.47%). The Oil & Gas and Banking indices followed suit, falling by 0.57% and 0.09% on CONOIL (-9.80%) and ZENITHBANK (-0.41%) respectively. On the flip side, the Consumer Goods and Industrial indices, the gainers, improved by 0.25% and 0.13% on UNILEVER (+9.36%) and WAPCO (+1.96%) respectively.
Investor sentiment weakened in today’s trading session, as market breadth decreased to 0.69x from 1.92x. This was illustrated by the advance of 18 stocks, led by AIRTELAFRI (+10.00%) and REDSTAREX (+9.94%) and the decline of 26 stocks, led by CONOIL (-9.80%) and CWG (-9.73%). Activity level strengthened as total volume and value increased by 60.12% and 111.87% as investors exchanged about 443.61 million units of shares worth over ₦5.05 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.
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 bond papers closed flat at 11.48% and 11.90% respectively. Both yields on the FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 2bps.
Treasury bill yields for the 91-day paper increased by 14bps to close at 3.91%, the 182-day paper closed flat at 4.81% while the 364-day paper compressed by 1bp to close at 7.14%.
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.
- Local Bourse Closes the Week in Green, NGX ASI Up 293bps
- Mixed Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Positive Performance in the Commodities Market
- Mixed Performance in African Stocks