Local Bourse Reverses Yesterday`s Gain

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Local Bourse Reverses Yesterday`s Gain
Local Bourse Reverses Yesterday`s Gain

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.

Local Bourse Reverses Yesterday`s Gain - Brand Spur

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.

 

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Fixed Income

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.

 

MARKET SNAPSHOT

  • 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