Downward Trajectory Persists In The Local Bourse

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Positive Performance Returns In The Local Bourse, NGX ASI Gains 58bps
Positive Performance Returns In The Local Bourse, NGX ASI Gains 58bps

At the end of Yesterday’s trading session, the Nigerian equities market closed negative as the benchmark index declined by 0.51% to close at 42,247.98 points. This was mainly due to selloffs in bellwether stocks such as SEPLAT (-6.47%) and MTNN (-1.05%).

Consequently, the YTD return decreased to 4.91% as market capitalisation reduced by ₦112.30 billion to close at  ₦22.04 trillion.

The sectoral performance marginally weakened as four of the five indices under coverage declined while the Consumer Goods, the only gainer, improved by 0.08% on NB (+0.32%). The Oil & Gas index, the biggest loser, decreased by 3.51% on SEPLAT (-6.47%). The Insurance, Banking and Industrial indices followed suit, falling by 2.24%, 1.18% and 0.10% on MANSARD (-7.89%), ZENITHBANK (-1.88%) and WAPCO (-1.80%) respectively.

Investor sentiment weakened in today’s trading session, as market breadth decreased to 0.50x from 0.65x. This was illustrated by the advance of 17 stocks, led by MEYER (+10.00%) and NEM (+7.33%) and the decline of 34 stocks, led by BOCGAS (-10.00%) and UPDC (-9.09%). Activity level was mixed as the total volume declined by 3.42% while the total value improved by 49.02% as investors exchanged about 324.02 million units of shares worth over ₦5.29 billion.

Downward Trajectory Persists In The Local Bourse
Downward Trajectory 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 relatively quiet activity across the bond yield curve as 3 of the 4 bond yields under coverage closed flat while the yield on the FGN-APR-2023 compressed by 1bp. The yields on the FGN-APR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 9.26%, 11.64% and 12.24%.

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Treasury bill yields for the 91 and 182-day papers closed flat at 2.46% and 3.35% while the 364-day paper increased by 23bps to close at 5.65% 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

  • Downward Trajectory Persists in the Local Bourse, NGX ASI Dips 51bps
  • Quiet Activity across the Bond Yield Curve
  • Negative Sentiment in Global Stocks
  • Brent Crude Reports at $69.81/barrel
  • Negative Performance in African Stocks