Negative Performance Persists In The Local Bourse

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Negative Performance In The Local Bourse As NGX ASI Dips Marginally By 1bp
Negative Performance In The Local Bourse As NGX ASI Dips Marginally By 1bp

At the end of  yesterday’s trading session, the Nigerian equities market closed in red as the benchmark index declined by 1.81% to close at 42,463.16 points. This was mainly due to selloffs in bellwether stocks such MTNN (-10.00%) and FLOURMILL (-0.85%).

Consequently, the YTD return decreased to 5.44% as market capitalisation reduced by ₦409.55 billion to close at  ₦22.16 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Banking sector, the biggest loser, decreased by 1.15% on ACCESS (-5.26%). The Consumer Goods and Oil & Gas indices followed suit, declining by 0.14%, and 0.12% on FLOURMILL (-0.85%) and OANDO (-0.63%) respectively.  Conversely, the Insurance and Industrial indices, the gainers, improved by 0.77% and 0.04% on MANSARD (+7.55%) and WAPCO (+0.60%) respectively.

Investor sentiment weakened but higher than the previous trading session, as market breadth increased to 0.65x from 0.50x. This was illustrated by the advance of 15 stocks, led by CORNERST (+7.69%) and MANSARD (+7.55%) and the decline of 23 stocks, led by MTNN (-10.00%) and AFRIPRUD (-7.69%). Activity level was mixed as the total volume improved by 49.16% while the total value declined by 4.20% as investors exchanged about 335.48 million units of shares worth over ₦3.55 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, 182 and 364-day papers closed flat at 2.46%, 3.35% and 5.42% respectively.

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 181bps
  • Mixed Sentiment across the Bond Yield Curve
  • Positive Sentiment in Global Stocks
  • Brent Crude Reports at $71.28/barrel
  • Mixed Performance in African Stocks

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