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

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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 today’s trading session, the Nigerian equities market closed positive as the benchmark index improved by 0.14% to close at 43,260.13 points.

This was mainly due to buy pressures in bellwether stocks such as FBNH (+6.49%) and CONOIL (+2.53%). Consequently, the YTD return improved to 7.42% as market capitalisation increased by ₦31.77 billion to close at  ₦22.58 trillion.

The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Oil &  Gas index, the biggest gainer, increased by 1.27% on CONOIL (+2.53%). The Insurance and Banking indices followed suit, rising by 0.86% and 0.76%, on NEM (+7.89%) and FBNH (+6.49%) respectively. On the flip side, the Industrial and Consumer Goods, the losers, declined by 0.14% and 0.13% on WAPCO (-2.20%) and DANGSUGAR (-1.79%) respectively.

Investor sentiment strengthened at the end of today’s trading session, as market breadth increased to 1.06x from 0.70x. This was illustrated by the advance of 17 stocks, led by HONYFLOUR (+9.73%) and NEM (+7.89%) and the decline of 16 stocks, led by TIP (-9.76%) and UPDC (-9.74%). Activity level strengthened as total volume and value increased by 1103.94% and 405.72% respectively as investors exchanged about 2,402.07 million units of shares worth over ₦16.47 billion.

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

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 relatively bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower while the yield on FGN-JAN-2026 bond paper closed flat. The yields on the FGN-APR-2023, FGN-APR-2024 and FGN-JUL-2030  bond papers compressed by 2bps, 1bp and 1bp respectively.

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Treasury bill yields for the 182 and 364-day papers compressed by 67bps and 1bp to close at 4.45% and 6.56% respectively while the 91-day paper closed flat at 4.04%.

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 Starts the Week in Green, NGX ASI Gains 14bps
  • Bullish Sentiment across the Bond Yield Curve
  • Positive Sentiment in Global Stocks
  • Negative Performance in Commodities Market
  • Positive Performance in African Stocks