At the end of yesterday’s trading session, the Nigerian equities market closed positive as the benchmark index improved by 0.09% to close at 47,109.25 points.
Yesterday`s performance was due to buy pressures in bellwether stocks such as STANBIC (+2.21%) and MTNN (+0.50%). Consequently, the YTD return increased to 10.28% as market capitalisation improved by ₦28.61 billion to close at ₦25.39 trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined while the Insurance index, the only gainer, improved by 0.09% on NEM (+5.14%).
The Industrial, the biggest loser, declined by 0.34% on DANGCEM (-0.47%). The Banking, Consumer Goods and Oil and Gas indices, followed suit, declining by 0.20%, 0.09%, and 0.04% on ZENITHBANK (-0.74%), UNILEVER (-0.36%) and ETERNA (-0.53%) respectively.
Investors sentiment strengthened as the market breadth decreased to 0.62x from 1.33x. This was illustrated by the advance of 18 stocks, led by LEARNAFRCA (+9.94%) and SCOA (+9.55%) and the decline of 29 stocks, led by UPDC (-6.36%) and REGALINS (-5.13%). Activity level strengthened as the total volume and value improved by 16.06% and 116.55% respectively as investors exchanged about 318.25 million units of shares worth over ₦8.27 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 bullish sentiment across the bond yield curve as three of the four bond yields under coverage closed lower while the yields on FGN-JAN-2026 closed higher by 1bp. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JUL-2030 compressed by 1bp, 1bp and 4bps respectively.
Treasury bill yields for the 91, 182 and 364-day paper closed flat at 4.04%, 4.64%, and 5.20% 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 Gains 9bps
- Bullish Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closed in Green
- Positive Sentiment in African Stocks
