Negative Performance Persists In Local Bourse

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Negative Performance Persists In Local Bourse
Negative Performance Persists In Local Bourse

The Nigerian equities market closed in red at the end of  yesterday ‘s trading session, as the benchmark index declined by 0.02% to close at 43,245.02 points.

This was mainly due to sell pressures in bellwether stocks such as STANBIC (-3.21%) and ETERNA (-9.02%). Consequently, the YTD return declined to 7.39% as market capitalisation decreased by ₦11.36 billion to close at  ₦22.57trillion.

The sectoral performance significantly strengthened as four of the five indices under coverage improved, while the Oil & Gas index declined by 0.24% on ETERNA (-9.02%). The Insurance index, the biggest gainer, increased by 2.05% on AIICO (+9.26%). The Banking, Industrial and Consumer Goods indices followed suit, rising by 0.25%, 0.13% and 0.09% on ZENITHBANK (+1.03%), WAPCO (+2.25%) and DANGSUGAR (+0.92%) respectively.

Investor sentiment strengthened but lower than the previous trading session, as market breadth decreased to 1.22x from 1.27x. This was illustrated by the advance of 22 stocks, led by LIVINGTRUST (+10.00%) and CHAMS (+9.52%) and the decline of 18 stocks, led by HONYFLOUR (-9.78%) and ETERNA (-9.02%). Activity level strengthened as total volume and value improved by 11.57% and 28.86% respectively as investors exchanged about 243.19 million units of shares worth over ₦3.75 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 relatively bullish sentiment across the bond yield curve as 2 of the 4 bond yields under coverage closed lower, the yield on the FGN-JAN-2026 bond paper closed flat at 11.32% while the yield on the FGN-JUL-2030 bond paper increased by 12bps. The yields on the FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 25bps and 2bps respectively.

Treasury bill yields for the 91, 182 and 364-day papers closed flat at 4.20%, 5.12% and 6.56% respectively.

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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

  • Negative Performance Persists in the Local Bourse, NGX ASI Sheds 2bps
  • Bullish Sentiment across the Bond Yield Curve
  • Negative Sentiment in Global Stocks
  • Brent Crude Reports at $82.15/barrel
  • Negative Performance in African Stocks