At the end of Yesterday’s trading session, the Nigerian equities market closed negative as the benchmark index declined by 1.77% to close at 41,685.22 points.
This was mainly due to selloffs in bellwether stocks such as DANGCEM (-10.00%) and NGXGROUP (-2.86%). Consequently, the YTD return reduced to 3.51% as market capitalisation declined by ₦391.32 billion to close at ₦21.75 trillion.
The sectoral performance significantly strengthened as four of the five indices under coverage improved while the Industrial index declined by 5.34% on DANGCEM(-10.00%). The Oil & Gas, the biggest gainer, improved by 1.70% on OANDO (+8.83%). The Banking, Insurance and Consumer Goods indices followed suit, rising by 1.68%, 1.11% and 0.09% on GTCO (+4.94%), WAPIC (+8.51%), NB (+0.11%) respectively.
Investor sentiment weakened at the end of today’s trading session, as market breadth reduced to 1.47x from 1.82x. This was illustrated by the advance of 22 stocks, led by SKYAVN (+9.66%) and OANDO (+8.83%) and the decline of 15 stocks, led by UACN (-10.00%) and DANGCEM (-10.00%). Activity level weakened as the total volume and value declined by 27.13% and 28.15% respectively as investors exchanged about 473.47 million units of shares worth over ₦5.18 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.
Fixed Income
There was relatively bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower while the yield on FGN-JUL-2030 bond paper closed flat. Each of the yields on the FGN-APR-2023, FGN-APR-2024 and FGN-JAN-2026 bond papers declined by 1bp.
Treasury bill yields for the 91, 182 and 364-day papers closed flat at 2.46%, 3.35% and 5.64% 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 Returns in the Local Bourse, NGX ASI Sheds 177bps
- Bullish Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Negative Performance in the Commodities Market
- Mixed Performance in African Stocks
