At the end of yesterday’s trading session, the Nigerian equities market closed in red as the benchmark index declined by 0.18% to close at 47,202.30 points. Yesterday`s performance was due to selloffs in large caps such as SEPLAT (-1.85%) and GTCO (-2.39%). Consequently, the YTD return decreased to 10.50% as market capitalisation declined by ₦45.28 billion to close at ₦25.44 trillion.
The sectoral performance weakened as three of the fives indices under coverage declined. The Oil and Gas index, the biggest loser declined by 0.99% on SEPLAT (-1.85%). The Banking and Insurance indices followed suit, decreasing by 0.95% and 0.49% on GTCO (-2.39%) and NEM (-6.48%) respectively. Conversely, the Consumer goods and Industrial goods indices improved by 0.10% and 0.03% on GUINNESS (+10.00%) and WAPCO (+0.56%) respectively.
Investors sentiment weakened but positive as the market breadth declined to 1.19x from 3.33x. This was illustrated by the advance of 19 stocks, led by NCR (+10.00%) and GUINNESS (+10.00%) and the decline of 16 stocks, led by PHARMDEKO (-8.84%) and NEM (-6.48%). Activity level was positive as the total volume and value increased by 57.23% and 28.79% respectively as investors exchanged about 311.50 million units of shares worth over ₦4.39 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 bullish sentiment across the bond yield curve as all the four bond yields under coverage closed lower. The yields on the FGN-APR-2023, FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL 2030 compressed by 1bp, 1bp, 31bps and 79bps respectively.
Treasury bill yield for the 91-day paper closed flat at 4.03%. The 182-day paper increased by 36bps to close at 4.74% while the 364-day paper declined by 1bp to close at 5.20%.
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
- Domestic Bourse Ends the Week in Red, NGX ASI Sheds 18bps
- Bullish Sentiment across the Bond Yield Curve
- Positive Performance in Global Stocks
- Commodities Market Closed in Red
- Negative Sentiment in African Stocks
