Local Bourse Opens The Week Positive, NGX ASI Inches Up By 10bps

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Upward Trajectory Persists In The Local Bourse
Upward Trajectory Persists In The Local Bourse

The Nigerian equities market closed positive at the end of yesterday’s trading session as the benchmark index improved by 0.10% to close at 43,897.13 points.

 

This was mainly due to buy pressures in bellwether stocks such as BUAFOODS (+9.96%) and DANGCEM (+4.00%). Consequently, the YTD return increased to 9.01% as market capitalisation improved by ₦23.01 billion to close at  ₦23.65trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Oil & Gas index, the biggest loser, fell by 0.58% on ARDOVA (-2.89%). The Banking and Consumer Goods followed suit, declining by 0.12% and 0.05% on 0.12% and 0.05% on ZENITHBANK (-0.20%) and FLOURMILL (-3.10%) respectively. On the flip side, the Insurance and Industrial in

dices, the gainers, improved by 2.77% and 1.71% on AIICO (+7.69%) and DANGCEM (+4.00%) respectively.

Investor sentiment closed positive but lower than the previous trading session as the market breadth decreased to 1.23x from 3.44x. This was illustrated by the advance of 27 stocks, led by BUAFOODS (+9.96%) and MRS (+9.72%) and the decline of 22 stocks, led by NNFM (-9.66%) and UBN (-6.90%). Activity level weakened as the total volume and value declined by 21.23% and 30.30% respectively as investors exchanged about 311.26million units of shares worth over ₦8.64billion.

Local Bourse Opens The Week Positive, NGX ASI Inches Up By 10bps - Brand Spur

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

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There was relatively bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower while the FGN-JUL-2030 closed flat at 12.61%. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 closed flat at 7.66%, 9.09% and 11.35%  respectively.

Treasury bill yields for the 182 and 364-day papers closed flat at 3.73% and 5.23% respectively while the 91-day paper compressed by 1bp to close at 2.99%.

 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 Starts the Week in Green, NGX ASI Gains 10bps
  • Bullish Sentiment across the Bond Yield Curve
  • Negative Sentiment in Global Stocks
  • Brent Crude Reports at $81.34/barrel
  • Mixed Performance in African Stocks