The domestic bourse maintained Monday’s positive sentiment as the benchmark index advanced by 1.04% to 47,111.21 points.
Yesterday’s performance was supported by buying interest in large caps, SEPLAT (+10.00%) and MTNN (+2.53%.). Consequently, the YTD return increased to 10.29% as market capitalisation improved by ₦262.18 million to close at ₦25.39 trillion.
The sectoral performance totally strengthened as all the five indices under coverage improved. The Oil and Gas index, the biggest gainer, improved by 5.43% on SEPLAT (+10.00%). The Banking, Insurance, Industrial and Consumer goods indices improved by 2.15%, 0.84%, 0.38% and 0.19% on ZENITHBANK (+4.99%), MANSARD (+3.83%), WAPCO (+5.47%) and FLOURMILL (+1.05%) respectively.
Investor sentiment strengthened as the market breadth improved to 1.71x from 1.44x. This was illustrated by the advance of 36 stocks, led by SEPLAT (+10.00%) and CONOIL (+9.76%) and the decline of 21 stocks, led by CAVERTON (-9.50%) and ETERNA (-9.17%). Activity level was mixed as the total volume declined by 21.63% while the total value increased by 7.30% as investors exchanged about 341.52 million units of shares worth over ₦3.69 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 quiet activity across the bond yield curve as 2 of the 4 bond yields under coverage closed flat, the yield on the FGN-APR-2023 paper increased by 3bps while the FGN-MAR-2024 bond yield compressed by 3bps. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 11.00% and 12.11% respectively.
Treasury bill yield on the 91-day paper closed flat at 4.04%, the 182-day paper compressed by 7bps to close at 4.38% while the 364-day paper closed higher by 61bps to 5.71%.
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 sustains positive trading, NGX ASI advances by 104bps
- Quiet Activity across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Positive Performance in the Commodities Market
- Positive Performance in African Stocks
