The Nigerian equities market closed in red at the end of yesterday’s trading session, as the benchmark index declined by 0.32% to close at 43,108.77 points.
This was mainly due to sell pressures in bellwether stocks such as SEPLAT (-3.63%) and MRS (-9.87%). Consequently, the YTD return declined to 7.05% as market capitalisation decreased by ₦71.10 billion to close at ₦22.49trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined, while the Insurance index improved by 0.64% on AIICO (+8.47%). The Oil & Gas index, the biggest loser, decreased by 1.64% on MRS (-9.87%). The Banking, Consumer Goods and Industrial indices followed suit, declining by 1.16%, 1.06% and 0.01% on GTCO (-1.57%), CADBURY (-1.60%) and CUTIX (-6.56%) respectively.
Investor sentiment weakened than the previous trading session, as market breadth decreased to 0.58x from 1.22x. This was illustrated by the advance of 14 stocks, led by HONYFLOUR (+9.76%) and AIICO (+8.47%) and the decline of 24 stocks, led by MRS (-9.87%) and CHAMS (-9.70%). Activity level strengthened as total volume and value improved by 9.43% and 12.54% respectively as investors exchanged about 266.12 million units of shares worth over ₦4.22 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.
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 higher by 36bps while the yield on the FGN-JUL-2030 bond paper closed flat at 12.29%.
The yields on the FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 1bp and 5bps respectively.
Treasury bill yields for the 182 and 364-day papers closed flat at 5.12% and 6.56% respectively while the 91-day paper compressed by 1.73% to close at 2.47%.
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.
- Bearish Performance Persists in the Local Bourse, NGX ASI Sheds 32bps
- Bullish Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Brent Crude Reports at $82.20/barrel
- Negative Performance in African Stocks