At the end of Yesterday’s trading session, the Nigerian equities market closed in red as the benchmark index declined by 0.01% to close at 47,102.64 points. Yesterday’s performance was due to profit-taking in large-cap stocks such as SEPLAT (-5.88%) and ZENITHBANK (-0.19%).
Consequently, the YTD return declined to 10.27% as market capitalisation decreased by N3.56 billion to close at ₦25.39 trillion.
The sectoral performance significantly strengthened as four of the five indices under coverage improved while the Oil and Gas index, the only loser, declined by 3.08% on SEPLAT (-5.88%). The Insurance index, the biggest gainer, increased by 0.54% on NEM (+1.47%). The Banking, Consumer Goods and Industrial indices, followed suit, rising by 0.36%, 0.22%, and 0.11% on GTCO (+1.15%), DANGSUGAR (+1.67%) and WAPCO (+1.54%) respectively.
Investors sentiment strengthened as the market breadth increased to 1.88x from 0.62x. This was illustrated by the advance of 32 stocks, led by RTBRISCOE (+10.00%) and NNFM (+10.00%) and the decline of 17 stocks, led by CWG (-9.76%) and CHAMPION (-8.89%). Activity level was mixed as the total volume improved by 12.41% while the total value declined by 21.58% as investors exchanged about 357.76 million units of shares worth over ₦6.48 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.
There was relatively bullish sentiment across the bond yield curve as two of the four bond yields under coverage closed lower, the yield on the FGN-MAR-2024 closed flat while the yield on the FGN-JUL-2030 increased by 1bp. The yields on the FGN-APR-2023 and FGN-JAN-2026 declined by 1bp and 72bps respectively.
Treasury bill yields for the 91-day paper compressed by 89bps to close at 3.15% while the 182 and 364-day paper closed flat at 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.
- Local Bourse Reverses Yesterday`s Gain, NGX ASI Marginally Sheds 1bp
- Relatively Bullish Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports at $93.04/barrel
- Negative Sentiment in African Stocks