Local Bourse Closes The Week In Green

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Local Bourse Closes The Week In Green
Local Bourse Closes The Week In Green

At the end of yesterday’s trading session, The Nigerian equities market closed positive as the benchmark index improved by 0.47% to close at 41,882.97 points.

This was mainly due to buy pressures in bellwether stocks such as SEPLAT (+3.17%) and GTCO (+3.92%). Consequently, the YTD return increased to 4.00% as market capitalisation improved by ₦103.18 billion to close at  ₦21.85 trillion.

The sectoral performance totally strengthened as all the five indices under coverage improved. The Banking, the biggest gainer, improved by 2.20% on GTCO (+3.92%). The Oil & Gas, Consumer Goods, Insurance and Industrial indices followed suit, rising by 1.30%, 0.24%, 0.16% and 0.11% on GTCO (+3.92%), GUINNESS (+6.85%), SOVRENINS (+9.09%) and  WAPCO (+1.84%) respectively.

Investor sentiment strengthened at the end of today’s trading session, as market breadth increased to 1.85x from 1.47x. This was illustrated by the advance of 24 stocks, led by MEYER (+10.00%) and SOVRENINS (+9.09%) and the decline of 13 stocks, led by UNITYBNK (-6.52%) and JAIZBANK (-5.97%). Activity level weakened as the total volume and value declined by 6.03% and 33.86% respectively as investors exchanged about 444.94 million units of shares worth over ₦3.42 billion.

Local Bourse Closes The Week In Green
Local Bourse Closes The Week In Green

We expect positive sentiment to persist 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 FGN-APR-2023 bond paper compressed by 1bp. The yields on the FGN-APR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 9.42%, 11.28% and 12.56% respectively.

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Treasury bill yields for the 91-day paper compressed by 1bp to close at 2.45%, the 182-day paper increased by 39bps to close at 3.74% while the 364-day paper closed flat 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.

MARKET SNAPSHOT

  • Local Bourse Closes the Week in Green, NGX ASI Gains 47bps
  • Quiet Activity across the Bond Yield Curve
  • Positive Sentiment in Global Stocks
  • Brent Crude Reports at N75.02/$1
  • Positive Performance in African Stocks