The Nigerian equities market closed positive at the end of today’s trading session, as the benchmark index improved by 2.16% to close at 42,716.44 points.
This was mainly due to buy pressures in bellwether stocks such as NESTLE (+10.00%) and WAPCO (+1.05%). Consequently, the YTD return increased to 6.07% as market capitalisation improved by ₦471.44 billion to close at ₦22.30 trillion.
The sectoral performance significantly strengthened as four of the five indices under coverage improved while the Insurance index, the only loser, declined by 0.11% on NEM (-10.00%). The Consumer Goods index, the biggest gainer, improved by 6.69% on NESTLE (+10.00%). The Banking, Oil & Gas and Industrial indices followed suit, increasing by 0.66%, 0.21% and 0.07% on ACCESS (+2.20%), OANDO (+1.14%) and WAPCO (+1.05%) respectively.
READ ALSO: Positive Performance Returns In The Local Bourse, NGX ASI Gains 41bps
Investor sentiment strengthened as the market breadth increased to 2.58x from 1.75x. This was illustrated by the advance of 31 stocks, led by NESTLE (+10.00%) and ROYALEX (+10.00%) and the decline of 12 stocks, led by NEM (-10.00%) and WEMABANK (-8.86%). Activity level strengthened as the total volume and value increased by 26.46% and 435.99% respectively as investors exchanged about 455.21million units of shares worth over ₦9.88billion.
We expect positive sentiment to persist in the next trading session as the equities market still presents decent opportunities for investors chasing positive real returns 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 FGN-JAN-2026 and FGN-JUL-2030 closed flat at 11.27% and 12.60% respectively. The yields on FGN-APR-2023 and FGN-APR-2024 compressed by 2bps and 1bp respectively.
Treasury bill yields for the 91 and 364 day-papers closed flat at 3.27% and 5.24% respectively while the 182-day paper increased by 59bps to close at 4.32%.
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 and Year in Green, NGX ASI Gains 216bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Sentiment in Global Stocks
- Brent Crude Reports at $79.04/barrel
- Positive Performance in African Stocks
