Negative Performance In The Local Bourse, NGX ASI Sheds 9bps

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

The Nigerian equities market closed in red at the end of yesterday’s trading session as the benchmark index declined by 0.09% to close at 43,859.30 points.

 

This was mainly due to sell pressures in bellwether stocks such as NESTLE (-7.81%) and DANGCEM (-0.38%). Consequently, the YTD return decreased to 8.91% as market capitalisation declined by ₦20.38 billion to close at  ₦23.63trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Consumer Goods index, the biggest loser, fell by 4.76% on NESTLE (-7.81%). The Insurance and Industrial indices followed suit, declining by 2.14% and 0.27% on MBENEFIT (-10.00%) and DANGCEM (-0.38%) respectively. On the flip side, the Oil & Gas and Banking indices, the gainers, improved by 0.95% and 0.16% on SEPLAT (+0.75%) and ZENITHBANK (+0.20%) respectively.

Investor sentiment weakened as the market breadth decreased to 0.65x from 1.23x. This was illustrated by the advance of 17 stocks, led by BUAFOODS (+10.00%) and ETERNA (+5.09%) and the decline of 26 stocks, led by MBENEFIT (-10.00%) and BERGER (-9.94%). Activity level weakened as the total volume and value declined by 5.37% and 21.68% respectively as investors exchanged about 294.54million units of shares worth over ₦6.77billion.

Negative Performance In The Local Bourse, NGX ASI Sheds 9bps - Brand Spur

We expect positive sentiment to return 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 yields on the FGN-MAR-2024 and FGN-JUL-2030 bond papers closed flat at 9.09% and 12.61% respectively. The yields on the FGN-APR-2023 and FGN-JAN-2026 compressed by 1bp and 6bps respectively.

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Treasury bill yields for the 91, 182 and 364-day papers closed flat at 2.99%, 3.73% and 5.23% 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 in the Local Bourse, NGX ASI Sheds 9bps
  • Mixed Sentiment across the Bond Yield Curve
  • Mixed Sentiment in Global Stocks
  • Positive Performance in the Commodities Market
  • Negative Performance in African Stock