At the end of yesterday ‘s trading session, the Nigerian equities market closed positive as the benchmark index improved by 1.29% to close at 46,529.99 points.
This was mainly following investors’ interest in AIRTELAFRI (+10.0%) and JBERGER (+2.63%). Consequently, the YTD return increased to 8.93% as market capitalisation improved by ₦318.19 million to close at ₦25.07 trillion.
The sectoral performance was broadly negative as four of the five indices under coverage declined while the Banking index, the only gainer, improved by 1.32% on ETI (+9.55%). The Industrial index, the biggest loser, declined by 1.89% on BUACEMENT (-4.76%). The Insurance, Oil & Gas and Consumer goods followed suit, declining by 0.63%, 0.59% and 0.39% on LINKASSURE (-7.14%), SEPLAT (-0.63%) and DANGSUGAR (-2.82%) respectively.
Investor sentiment weakened as the market breadth declined to 1.00x from 1.27x. This was illustrated by the advance of 19 stocks, led by AIRTELAFRI (+10.00%) and ETI (+9.55%) and the decline of 19 stocks, led by CADBURY (-9.47%) and PRESTIGE (-8.70%). Activity level strengthened as the total volume and value increased by 32.82% and 34.66% respectively as investors exchanged about 328.99 million units of shares worth over ₦4.82 billion
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 while the FGN-JUL-2030 closed flat at 12.16%. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers compressed by 1bp, 52bps and 22bps 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.
MARKET SNAPSHOT
- Upward Trajectory Persists in the Local Bourse, NGX ASI Up 129
- Bullish Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Brent Crude Reports at $89.73/barrel
- Mixed Performance in African Stocks