The Nigerian equities market closed negative at the end of today’s trading session as the benchmark index declined by 0.34% to close at 44,454.67 points.
This was mainly due to selloffs in bellwether stocks such as DANGCEM (-1.82%) and FLOURMILL (-0.81%). Consequently, the YTD return decreased to 10.39% as market capitalisation declined by ₦80.85 billion to close at ₦23.95 trillion.
The sectoral performance was mixed as two of the five indices under coverage improved, two declined while the Oil & Gas index closed flat. The Banking and Consumer Goods indices, the gainers, improved by 0.26% and 0.18% on UBA (+0.61%) and NB (+1.10%) respectively. Conversely, the Industrial and Insurance indices, the losers, declined by 0.94% and 0.69% on DANGCEM (-1.82%) and SUNUASSUR (-8.82%) respectively.
Investor sentiment weakened as the market breadth decreased to 0.82x from 0.93x. This was illustrated by the advance of 14 stocks, led by FIDSON (+9.65%) and JBERGER (+3.64%) and the decline of 17 stocks, led by SUNUASSUR (-8.82%) and CUTIX (-7.17%). Activity level strengthened as the total volume and value improved by 26.10% and 168.88% respectively as investors exchanged about 405.74million units of shares worth over ₦9.83billion.
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 flat while the yields on the FGN-APR-2023 and FGN-MAR-2024 bond papers compressed by 23bps and 1bp respectively. The yields on the FGN-JAN-2026 and FGN-JUL-2030 closed flat at 11.29% and 12.61% respectively.
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
- Local Bourse Closes the Week in Red, NGX ASI Sheds 34bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Sentiment in Global Stocks
- Positive Performance in the Commodities Market
- Negative Performance in African Stocks
