The Nigerian equities market closed in green at the end of today’s trading session as the benchmark index improved by 1.71% to close at 44,608.82 points.
This was mainly due to buy pressures in bellwether stocks such as DANGCEM (+6.81%) and SEPLAT (+2.99%). Consequently, the YTD return increased to 10.77% as market capitalisation improved by ₦403.83 billion to close at ₦24.03trillion.
The sectoral performance significantly strengthened as four of the five indices under coverage improved while the Insurance index, declined by 0.49% on CHIPLC (-8.70%). The Industrial index, the biggest gainer, improved by 3.06% on DANGCEM (+6.18%). The Oil & Gas, Banking and Consumer Goods indices followed suit, rising by 1.37%, 0.39% and 0.14% on SEPLAT (+2.29%), ZENITHBANK (+0.20%) and GUINNESS (+2.93%) respectively.
Investor sentiment strengthened as the market breadth increased to 1.60x from 0.65x. This was illustrated by the advance of 24 stocks, led by JAIZBANK (+10.00%) and ACADEMY (+10.00%) and the decline of 15 stocks, led by CHIPLC (-8.70%) and REGALINS (-8.70%). Activity level weakened as the total volume and value declined by 9.58% and 43.53% respectively as investors exchanged about 266.33million units of shares worth over ₦3.82billion.
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 yields on the FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 11.29% and 12.61% respectively. Each of the yields on the FGN-APR-2023 and FGN-MAR-2024 compressed by 1bp.
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
- Positive Performance Returns in the Local Bourse, NGX ASI Gains 171bps
- Mixed Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Positive Performance in the Commodities Market
- Positive Performance in African Stocks
