At the end of yesterday’s trading session, the Nigerian equities market closed in negative territory as the benchmark index extended its bearish momentum for the second consecutive day declining by 0.15% to close at 47,282.67 points.
Yesterday’s performance was due to bargain hunting in large-cap stocks such as BUAFOODS (-3.09%) and NGXGROUP (-1.47%). Consequently, the YTD return decreased to 10.69% as market capitalisation fell by ₦38.03 billion to close at ₦25.48 trillion.
The sectoral performance weakened as three of the five indices under coverage declined, the Consumer Goods index, improved by 0.07% on PZ (+9.55%) while the Industrial index closed flat. The Banking Index, the biggest loser, decreased by 0.63% on ETI (-0.42%). The Insurance and Oil & Gas indices followed suit, falling by 0.48% and 0.23% on WAPIC (-9.43%) and MRS (-9.96%) respectively.
Investors’ sentiment weakened as the market breadth decreased to 0.65x from 1.19x. This was illustrated by the decline of 20 stocks, led by MRS (-9.96%) and IKEJAHOTEL (+9.87%) and the advance of 20 stocks, led by PZ (+9.55%) and CWG (+8.08%). Activity level was mixed as the total volume increased by 150.08% and value decreased by 1.56% as investors exchanged about 599.51mn units of shares worth over ₦3.83bn.
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 mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed lower. Both the yields on the FGN-JAN-2026 and FGN-JUL-2030 closed flat. The yields on the FGN-APR-2023 and FGN-MAR-2024 compressed by 2bps and 1bp respectively.
Treasury bill yields for the 91 and 364-days paper closed flat at 1.88%, and 3.54% while the 182-day bond yield compressed by 47bps to close at 3.07%.
We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.
MARKET SNAPSHOT
- Local Bourse Closes the Week in Downward Territory, NGX ASI Sheds 15bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closes in Red
- Mixed Performance in African Stocks
