Negative Performance Persists In The Local Bourse

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Nigerian Stocks Gain ₦215.08 Billion To Close At ₦25.50 Trillion
Nigerian Stocks Gain ₦215.08 Billion To Close At ₦25.50 Trillion

At the end of today’s trading session, the Nigerian equities market closed negative as the benchmark index declined by 0.05% to close at 43,248.05 points.

This was mainly due to selloffs in bellwether stocks such GTCO (-1.40%) and DANGSUGAR (-1.22%). Consequently, the YTD return decreased to 7.39% as market capitalisation declined by ₦11.94 billion to close at  ₦22.57 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Oil & Gas, the biggest loser, decreased by 0.40% on OANDO (-2.04%). The Consumer Goods and Industrial indices followed suit, declining by 0.21%, and 0.04% on DANGSUGAR (-1.22%) and WAPCO (-0.60%) respectively.  Conversely, the Insurance and Banking indices, the gainers, improved by 1.64% and 0.26% on AIICO (+9.21%) and ACCESS (+4.4%) respectively.

Investor sentiment weakened in today’s trading session, as market breadth declined to 0.50x from 0.67x. This was illustrated by the advance of 12 stocks, led by AIICO (+9.21%) and ACCESS (+4.40%) and the decline of 24 stocks, led by UPDCREIT (-9..89%) and IKEJAHOTEL (-9.63%). Activity level strengthened as the total volume and value declined by 5.53% and 57.16% as investors exchanged about 224.91 million units of shares worth over ₦3.71 billion

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

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 mixed sentiment across the bond yield curve as 2 of the 4 bond yields under coverage closed lower while the yields on the FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 11.64% and 12.24% respectively. Both yields on the FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 1bp.

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Treasury bill yields for the 91 and 182-day papers closed flat at 2.46% and 3.35% respectively while the 364-day compressed by 113bps to close at 5.42%.

 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 5bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Sentiment in Global Stocks
  • Brent Crude Reports at $70.87/barrel
  • Mixed Performance in African Stocks