At the end of Yesterday trading session, the Nigerian equities market closed negative as the benchmark index declined by 0.22% to close at 43,349.90 points.
This was mainly due to sell pressures in bellwether stocks such as GTCO (-2.23%) and UNILEVER (-7.53%). Consequently, the YTD return declined to 7.65% as market capitalisation decreased by ₦49.21 billion to close at ₦22.62trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined while the Industrial index improved by 0.01% on CUTIX (+3.08%). The Insurance index, the biggest loser, declined by 0.85% on CHIPLC (-8.06%). The Consumer Goods, Banking and Oil & Gas indices followed suit, falling by 0.66%, 0.37% and 0.19% on UNILEVER (-7.53%), GTCO (-2.23%) and ARDOVA (-5.38%) respectively.
Investor sentiment weakened at the end of today’s trading session, as market breadth decreased to 0.58x from 1.00x. This was illustrated by the advance of 14 stocks, led by ABCTRANS (+10.00%) and CHAMS (+4.55%) and the decline of 24 stocks, led by NEIMETH (-9.09%) and JAPAULGOLD (-9.09%). Activity level weakened as total volume and value decreased by 37.53% and 47.77% as investors exchanged about 264.79 million units of shares worth over ₦6.08 billion.
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 higher while the yields on the FGN-JAN-2026 and FGN-JUL-2030 closed flat at 11.47% and 12.04% respectively. The yields on the FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 9bps and 1bp.
Treasury bill yields for the 91, 182 and 364-day papers closed flat at 4.04%, 5.12% and 6.83% respectively.
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 in Red, NGX ASI Sheds 22bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Sentiment in Global Stocks
- Positive Performance in Commodities Market
- Mixed Performance in African Stocks
