Local Bourse Closes The Week In Red, NGX ASI Sheds 20bps

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Local Bourse Starts the Week in Green, NGX ASI Gains 14bps
Local Bourse Starts the Week in Green, NGX ASI Gains 14bps

At the end of yesterday’s trading session, the Nigerian equities market closed negative as the benchmark index declined by 0.20% to close at 43,199.27 points.

This was mainly due to selloffs in bellwether stocks such as NB (-2.86%) and NGXGROUP (-8.86%). Consequently, the YTD return declined to 7.27% as market capitalisation decreased by ₦45.25 billion to close at  ₦22.54 trillion.

The sectoral performance totally weakened as all the five indices under coverage declined. The Banking index, the biggest loser, declined by 0.79% on GTCO (-2.68%). The Insurance, Consumer Goods, Oil & Gas and Industrial indices followed suit, declining by 0.66%, 0.57%, 0.23% and 0.01% on LASACO (-7.08%), NB (-2.86%), ETERNA (-9.03%) and CUTIX (-4.81%) respectively.

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 bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower while the yield on FGN-JUL-2030 bond paper increased by 13bps. The yields on the FGN-APR-2023, FGN-APR-2024 and FGN-JAN-2026 bond papers compressed by 1bp, 1bp and 15bps.

Treasury bill yields for the 91, 182 and 364-day papers closed flat at 4.04%, 5.12% and 6.57% respectively.

Investor sentiment closed negative but higher than the previous trading session, as market breadth increased to 0.70x from 0.52x. This was illustrated by the advance of 16 stocks, led by UNITYBNK (+10.00%) and REGALINS (+5.41%) and the decline of 23 stocks, led by ETERNA (-9.03%) and NGXGROUP (-8.86%). Activity level was mixed as total volume declined by 5.24% while the total value increased by 24.93% as investors exchanged about 199.52 million units of shares worth over ₦3.26 billion.

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Local Bourse Closes The Week In Red, NGX ASI Sheds 20bps
Local Bourse Closes The Week In Red, NGX ASI Sheds 20bps

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 bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower while the yield on FGN-JUL-2030 bond paper increased by 13bps. The yields on the FGN-APR-2023, FGN-APR-2024 and FGN-JAN-2026 bond papers compressed by 1bp, 1bp and 15bps.

Treasury bill yields for the 91, 182 and 364-day papers closed flat at 4.04%, 5.12% and 6.57% 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 the Week in Red, NGX ASI Sheds 20bps
  • Bullish Sentiment across the Bond Yield Curve
  • Negative Sentiment in Global Stocks
  • Negative Performance in Commodities Market
  • Negative Performance in African Stocks