The Nigerian equities market closed in red at the end of Tuesday’ trading session, as the benchmark index declined by 0.01% to close at 43,255.14 points.
This was mainly due to sell pressures in bellwether stocks such as DANGSUGAR (-1.21%) and GTCO (-0.20%). Consequently, the YTD return declined to 7.41% as market capitalisation decreased by ₦0.60 billion to close at ₦22.58 trillion.
The sectoral performance significantly weakened as three of the five indices under coverage declined, the Banking index, the only gainer under coverage, increased by 0.21% on ACCESS (1.65%) while the Industrial index closed flat. The Insurance index, the biggest loser, decreased by 1.97% on MANSARD (-5.11%). The Oil & Gas and Consumer Goods indices followed suit, falling by 0.20% and 0.16% on OANDO (-0.97%) and DANGSUGAR (-1.21%) respectively.
Investor sentiment strengthened at the end of Tuesday’s trading session, as market breadth increased to 1.27x from 1.06x. This was illustrated by the advance of 19 stocks, led by HONYFLOUR (+9.95%) and UPL (+8.70%) and the decline of 15 stocks, led by UPDC (-9.35%) and NEM (-9.27%). Activity level weakened as total volume and value declined by 90.93% and 82.34% respectively as investors exchanged about 217.97million units of shares worth over ₦2.91billion.
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 2bps. The yields on the FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 3bps and 1bp respectively.
Treasury bill yields for the 91-day paper declined by 1bp to close at 4.03%, the 182-day paper increased by 67bps to close at 5.12% while the 364-day paper closed flat at 6.56%.
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 in the Local Bourse, NGX ASI Sheds 1bp
- Bullish Sentiment across the Bond Yield Curve
- Negative Sentiment in Global Stocks
- Brent Crude Reports at $80.95/barrel
- Mixed Performance in African Stocks
