At the end of yesterday’s trading session, the Nigerian equities market closed in red as the benchmark index declined by 1.12% to close at 46,009.23 points.
This was mainly due to selloffs in DANGCEM (-8.53%) and FLOURMILL (-0.17%). Consequently, the YTD return decreased to 7.71% as market capitalization declined by ₦280.62 million to close at ₦24.79 trillion.
The sectoral performance marginally weakened as three of the five indices under coverage declined. The Industrial index, the biggest loser, declined by 3.25% on DANGCEM (-8.25%). The Insurance and Oil and Gas indices followed suit, falling by 1.79% and 0.48% on NEM (-8.57%) and ARDOVA ( -4.96%) respectively. Conversely, the Banking and Consumer goods indices, the gainers, improved by 1.08% and 1.77% on ETI (+9.65%) and GUINNESS (10.00%) respectively.
Investor sentiment strengthened as the market breadth increased to 1.53x from 1.00x. This was illustrated by the advance of 26 stocks, led by INTBREW (+10.00%) and ETI (+9.55%) and the decline of 17 stocks, led by NEM (-8.52%) and DANGCEM (-8.53%). Activity level weakened as the total volume and value decreased by 15.06% and 42.64% respectively as investors exchanged about 279.44 million units of shares worth over ₦2.76 billion.
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-JAN-2026 and FGN-JUL-2030 bond papers closed higher by 3bps and 13bps. The yields on the FGN-APR-2023 and FGN-MAR-2024 bond papers compressed by 2bps and 1bp respectively.
Treasury bill yields for the 182 and 364-day closed flat at 4.39% and 5.22% respectively while the 91-day paper increased by 101bps to close at 4.00%.
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 Returns in the Local Bourse, NGX ASI Sheds 112bps
- Mixed Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Brent Crude Reports at $90.48/barrel
- Negative Performance in African Stocks
