At the end of yesreday’s trading session, the Nigerian equities market closed negative with the benchmark index declining by 0.38% to close at 42,008.60 points. This was mainly due to selloffs in bellwether stocks such as WAPCO (-9.94%) and VITAFOAM (-8.68%). Consequently, the YTD return worsened to 4.32% as market capitalisation reduced by ₦83.128 billion to close at ₦21.92 trillion.
The sectoral performance totally weakened as all the five indices under coverage declined. The Insurance index, the biggest loser, weakened by 1.77% on CUSTODIAN (-2.60%). The Banking, Industrial, Consumer Goods and Oil & Gas indices, followed suit, falling by 1.37%, 0.58%, 0.34% and 0.11% on UBA (-5.06%), WAPCO (-9.94%), VITAFOAM (-8.68%) and ETERNA (-4.13%) respectively.
Investor sentiment weakened at the end of today’s trading session, as market breadth decreased to 0.42x from 0.72x. This was illustrated by the advance of 10 stocks, led by ROYALEX (+9.43%) and UPDC (+9.09%) and the decline of 24 stocks, led by WAPCO (-9.94%) and LINKASSURE (-8.93%). Activity level strengthened as the total volume and value improved by 133.31% and 77.04% respectively as investors exchanged about 422.18 million units of shares worth over ₦4.47 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 FGN-JUL-2030 bond paper increased by 26bps while the FGN-JAN-2026 closed flat at 11.64%. Both yields on FGN-APR-2023 and FGN-APR-2024 bond papers compressed by 1bp respectively.
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 28bps to close at 5.64%.
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.
- Local Bourse Starts the Week in Red Streak, NGX ASI Dips 38bps
- Bullish Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Brent Crude Reports at $71.34/barrel
- Mixed Performance in African Stocks