At the end of yesterdays trading session, the Nigerian equities market closed in green as the benchmark index increased by 0.27% to close at 47,286.34 points.
Yesterday`s performance was due to buying interest in large caps such as TOTAL (+9.92%) and GUINNESS (+10.00%). Consequently, the YTD return increased to 10.70% as market capitalisation improved by ₦69.57 billion to close at ₦25.48 trillion.
The sectoral performance strengthened as four of the fives indices under coverage improved while the Industrial index closed flat. The Oil and Gas index, the biggest gainer improved by 1.82% on TOTAL (+9.92%). The Consumer goods, Banking and Insurance indices followed suit, increasing by 0.98%, 0.64% and 0.33% due to gains recorded in GUINNESS (+10.00%), UBA (+1.72%) and MANSARD (+4.17%) respectively.
Investors sentiment strengthened as the market breadth improved to 3.33x from 1.93x. This was illustrated by the advance of 30 stocks, led by GUINNESS (+10.00%) and TOTAL (+9.92%) and the decline of 9 stocks, led by VERITASAP (-4.35%) and UBN (-3.20%). Activity level was negative as the total volume and value declined by 33.35% and 27.46% respectively as investors exchanged about 198.12 million units of shares worth over ₦3.41 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 mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed lower while the FGN-JAN-2026 and FGN-JUL 2030 increased by 25bps and 80bps respectively. The yields on the FGN-MAR-2024 and FGN-APR-2023 compressed by 2bps and 7bps respectively.
Treasury bill yields for the 91 and 182-day papers closed flat at 4.03% and 4.38% respectively while the 364-day paper declined by 30bps to closed at 5.21%.
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 Gains 27bps
- Mixed Sentiment across the Bond Yield Curve
- Mixed Sentiment in Global Stocks
- Commodities Market Closed in Green
- Mixed Performance in African Stocks
