Local Bourse Closes The Week In Red, NGX ASI Sheds 68bps

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NGX ASI Dips By 0.15% As Market Capitalisation Lose N33.36bn To Close At ₦22.59trillion
NGX ASI Dips By 0.15% As Market Capitalisation Lose N33.36bn To Close At ₦22.59trillion

The Nigerian equities market closed negative at the end of today’s session as the benchmark index declined by 0.68% to close at 43,253.01 points.

This was mainly due to selloffs in bellwether stocks such as MTNN (-4.50%) and GLAXOSMITH (-6.25%). Consequently, the YTD return declined to 7.41% as market capitalisation decreased by ₦154.6 billion to close at  ₦22.57trillion.

The sectoral performance strengthened as three of the five indices under coverage improved while the Oil & Gas and Industrial indices closed flat. The Insurance index, the biggest gainer, improved by  0.73% on MANSARD (+4.11%). The Banking and Consumer Goods indices followed suit, rising by 0.63% and 0.03% on FBNH (+4.35%) and FLOURMILL (+1.54%) respectively.

Investor sentiment strengthened in today’s trading session, as market breadth increased to 1.07x from 0.63x. This was illustrated by the advance of 16 stocks, led by VERITASKAP (+9.52%) and REDSTAREX (+6.38%) and the decline of 15 stocks, led by  UPDC (-9.47%) and LIVESTOCK (-8.68%). Activity level strengthened as total volume and value increased by 95.91% and 117.28% as investors exchanged about 314.85 million units of shares worth over ₦4.65 billion.

Local Bourse Closes The Week In Red, NGX ASI Sheds 68bps
Local Bourse Closes The Week In Red, NGX ASI Sheds 68bps

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 quiet activity across the bond yield curve as 3 of the 4 bond yields under coverage closed flat while the yield on the FGN-APR-2023 compressed by 1bp. The yields on the FGN-APR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 9.44%, 11.47% and 11.92% respectively.

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Treasury bill yields for the 91 and 364-day papers closed flat at 4.04% and 6.84% while the yield on the 182-day paper increased by 26bps to close at 5.13%.

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 the Week in Red, NGX ASI Sheds 68bps
  • Quiet Activity across the Bond Yield Curve
  • Positive Sentiment in Global Stocks
  • Positive Performance in the Commodities Market
  • Mixed Performance in African Stocks