At the end of yesterday’s trading session, the Nigerian equities market closed on a flat note at 47,064.82 points. Yesterday`s performance was due to an offset in large caps such as MTNN (+0.25%) and GUINNESS (-2.33%).
Consequently, the YTD return and market capitalisation closed flat at 10.18% and ₦25.36 trillion respectively.
The sectoral performance strengthened as three of the fives indices under coverage advanced. The Insurance index, the biggest gainer, increased by 1.51% on NEM (+8.26%). The Oil and Gas and Consumer goods indices followed suit, rising by 0.26% and 0.02% on ETERNA (+4.40%) and FLOURMILL (+4.93%) respectively. On the flip side, the Banking and Industrial indices, the losers, declined by 1.01% and 0.02% on ZENITHBANK (-0.74%) and WAPCO (-0.38%) respectively.
Investors sentiment strengthened as the market breadth increased to 1.33x from 1.00x. This was illustrated by the advance of 28 stocks, led by LEARNAFRCA (+9.70%) and MORISON (+9.55%) and the decline of 21 stocks, led by BERGER (-9.58%) and CHIPLC (-4.62%). Activity level weakened as the total volume and value declined by 18.88% and 32.74% respectively as investors exchanged about 274.21 million units of shares worth over ₦3.82 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 59bps respectively.
Treasury bill yields for the 182 and 364-day paper closed flat at 4.64% and 5.20% respectively. The yield on the 91-day paper increased by 1bp to close 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 Closed Flat, NGX ASI Remained Relatively Constant
- Bullish Sentiment across the Bond Yield Curve
- Positive Performance in Global Stocks
- Commodities Market Closed in Red
- Mixed Sentiment in African Stocks
