At the end of today’s trading session, the Nigerian equities market closed negative as the benchmark index decreased by 0.16% to close at 47,203.39 points.
Today`s performance was due to profit-taking in large caps such as OKOMUOIL (-10.00%) and SEPLAT (-0.46%). Consequently, the YTD return decreased to 10.50% as market capitalisation declined by ₦41.24 billion to close at ₦25.44 trillion.
The sectoral performance marginally weakened as three of the five indices under coverage declined while the Industrial index closed flat. The Oil and Gas index, the biggest loser declined by 1.48% on SEPLAT (-0.46%). The Consumer goods and Insurance indices followed suit, decreasing by 0.43% and 0.84% on PZ (-7.19%) and NEM (-9.61%) respectively. The Banking index, the only gainer, improved by 1.14% on ZENITHBANK (+2.28%).
Investor sentiment hitched higher as the market breadth increased to 1.00x from 0.75x. This was illustrated by the advance of 23 stocks, led by SUNNUASSUR (+10.00%) and SCOA (+9.60%) and the decline of 23 stocks, led by OKOMUOIL (-10.00%) and NEM (-9.61%). Activity level strengthened as the total volume and value increased by 126.49% and 115.06% respectively as investors exchanged about 285.48 million units of shares worth over ₦5.13 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 compressed by 4bps, 35bps and 44bps respectively while the yield on the FGN-JUL-2030 increased by 10bps.
Treasury bill yields for the 182 and 364-day papers increased by 106bps and 11bps to close at 5.51% and 5.21% respectively while the 92-day paper closed flat at 4.04%
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 Starts the Week in Red, NGX ASI Sheds 16bps
- Bullish Sentiment across the Bond Yield Curve
- Positive Sentiment in Global Stocks
- Commodities Market closed in Green
- Negative Performance in African Stocks
