At the end of yesterday’s trading session, the Nigerian equities market closed positive as the benchmark index improved by 0.14% to close at 47,394.53 points.
Yesterday`s performance was due to buy pressures in bellwether stocks such as WAPCO (+2.47%) and ZENITHBANK (+0.56%). Consequently, the YTD return advanced to 10.95% as market capitalization increased by ₦35.63 billion to close at ₦25.54 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 0.21% on OANDO (-1.44%). The Insurance index, the biggest gainer, improved by 0.99% on LINKASSURE (+10.00%). The Banking, Consumer Goods and Industrial Indices followed suit, increasing by 0.55%, 0.29%, and 0.18% on ETI (+5.29%), HONYFLOUR (+5.36%) and WAPCO (+2.47%) respectively.
Investors’ sentiment strengthened as the market breadth increased to 1.53x from 1.24x. This was illustrated by the advance of 23 stocks, led by LINKASSURE (+10.00%) and ROYALEX (+9.60%) and the decline of 15 stocks, led by ACADEMY (-9.69%) and RTBRISCOE (-9.57%). Activity level strengthened as the total volume and value increased by 18.73% and 0.61% respectively as investors exchanged about 300.76 million units of shares worth over ₦2.77 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 yield on FGN-JUL-2030 advanced by 44bps. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 compressed by 5bps, 2bps and 1bp respectively.
Treasury bill yields for the 91-day paper compressed by 1bp while the 182 and 364-day paper yields closed flat at 3.56% and 5.07% respectively.
We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.
MARKET SNAPSHOT
- Local Bourse Starts the Week in Green, NGX ASI Gains 14bps
- Bullish Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closed in Green
- Positive Performance in African Stocks
