At the end of yesterday’s trading session, the Nigerian equities market closed negative as the benchmark index declined by 0.23% to close at 47,154.35 points.
Yesterday`s performance was due to selloffs in large caps such as NESTLE (-2.79%) and CONOIL (-10.00%). Consequently, the YTD return declined to 10.39% as market capitalisation decreased by ₦58.34 billion to close at ₦25.42 trillion.
The sectoral performance totally weakened as all the five indices under coverage declined. The Insurance index, the biggest loser, declined by 2.16% on NEM (-9.87%). The Consumer Goods, Oil & Gas, Industrial and Banking indices followed suit, falling by 2.15%, 0.77%, 0.12%, and 0.06% on NESTLE (-2.79%), CONOIL (-10.00%), WAPCO (-2.08%), and ZENITHBANK(-0.19%) respectively.
Investors’ sentiment weakened as the market breadth decreased to 0.57x from 1.06x. This was illustrated by the advance of 16 stocks, led by NIGERINS (+9.52%) and CHIPLC (+8.47%) and the decline of 28 stocks, led by CONOIL (-10.00%) and JAIZBANK (-10.00%). Activity level strengthened as the total volume and value increased by 158.64% and 27.41% respectively as investors exchanged about 754.93 million units of shares worth over ₦3.64 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 relatively bullish sentiment across the bond yield curve as two of the four bond yields under coverage closed lower, the yield on the FGN-JAN-2026 paper increased by 3bps while the FGN-JUL-2030 closed flat. The yields on the FGN-APR-2023 and FGN-MAR-2024 bond papers compressed by 1bp and 18bps respectively.
Treasury bill yields for the 91 and 364-day paper compressed by 1bp and 2bps respectively while the 182-day paper closed flat at 3.21%.
We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.
MARKET SNAPSHOT
- Downward Trajectory Persists in the Local Bourse, NGX ASI Loses 23bps
- Bullish Sentiment across the Bond Yield Curve
- Mixed Performance in Global Stocks
- Commodities Market Closed in Green
- Negative Performance in African Stocks
