At the end of Yesterday’s trading session, the domestic bourse closed in green as the benchmark index increased by 0.85% to close at 47,329.80 points.
Today`s performance was due to buying interest in bellwether stocks such as DANGCEM (+5.45%) and FLOURMILL (+1.55%). Consequently, the YTD return increased to 10.80% as market capitalisation increased by ₦215.08 billion to close at ₦25.50 trillion.
The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Industrial goods index, the biggest gainer improved by 2.68% on DANGCEM (+5.45%). The Oil & Gas and Insurance indices followed suit, increasing by 1.43% and 0.19% on OANDO (+10.00%) and LASACO (+8.00%) respectively. Conversely, the Banking and Consumer goods indices declined by 0.51% and 0.18% on STANBIC (-2.10%) and INTBREW (-2.50%).
Investor sentiment strengthened as the market breadth improved to 1.20x from 0.64x. This was illustrated by the advance of 23 stocks, led by OANDO (+10.00%) and ACADEMY (+9.73%) and the decline of 19 stocks, led by PHARMDEKO (-10.00%) and CHAMPION (-8.70%). Activity level was mixed as the total volume decreased by 20.29% while the total value improved by 3.84% as investors exchanged about 346.70 million units of shares worth over ₦3.83 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 relatively bullish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed lower. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers decreased by 1bp, 1bp and 4bps respectively while the yield on the FGN-JUL-2030 increased by 15bps.
Treasury bill yields for the 91, 182 and 364-day papers closed flat at 4.04%, 4.45% and 5.10% 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
- Positive Performance Returns in the Local Bourse, NGX ASI Advances by 85bps
- Bullish Sentiment across the Bond Yield Curve
- Negative Sentiment in Global Stocks
- Negative Performance in Commodities Market
- Positive Performance in African Stocks
