The Nigerian equities market closed in green at the end of yesterday’s trading session as the benchmark index improved by 1.73% to close at 45,430.14 points.
This was mainly due to buy pressures in bellwether stocks such as AIRTELAFRI (+10.00%) and SEPLAT (+4.36%). Consequently, the YTD return increased to 12.81% as market capitalisation improved by ₦417.15 billion to close at ₦24.48 trillion.
The sectoral performance significantly strengthened as three of the five indices under coverage improved, the Industrial index closed flat while the Consumer Goods index declined by 0.02% on CHAMPION (-1.23%). The Oil & Gas index, the biggest gainer, improved by 2.21% on SEPLAT (+4.36%). The Insurance and Banking indices, followed suit, increasing by 0.59% and 0.50% on CORNERST (+6.00%) and ZENITHBANK (+0.39%) respectively.
Investor sentiment weakened as the market breadth decreased to 0.94x from 2.08x. This was illustrated by the advance of 16 stocks, led by AIRTELAFRI (+10.00%) and CORNERST (+6.00%) and the decline of 17 stocks, led by FTNCOCOA (-7.69%) and CHIPLC (-7.25%). Activity level strengthened as the total volume and value increased by 7.53% and 365.28% as investors exchanged about 252.94million units of shares worth over ₦8.93billion.
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 relatively bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower, the yield on FGN-JUL-2030 closed flat at 12.62%. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers compressed by 2bps, 1bp and 2bps respectively.
Treasury bill yields for the 91, 182 and 364-day closed flat at 2.99%, 4.39% and 5.22% 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.
MIXED PERFORMANCE
- Positive Performance Persists in the Local Bourse, NGX ASI Gains 173bps
- Bullish Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Positive Performance in the Commodities Market
- Mixed Performance in African Stocks
