At the end of yesterday’s trading session, the Nigerian equities market closed in negative territory as the benchmark index declined by 0.07% to close at 47,251.93 points. Yesterday’s performance was due to bargain hunting in large-cap stocks such as UACN (-4.92%) and WAPCO (-0.21%).
Consequently, the YTD return decreased to 10.62% as market capitalisation fell by ₦16.56 billion to close at ₦25.47 trillion.
The sectoral performance weakened as three of the five indices under coverage declined. The Banking index, the biggest loser, decreased by 0.91% on GTCO (-0.19%). The Insurance and Industrial indices followed suit, falling by 0.71% and 0.01% on CUSTODIAN (-1.41%) and WAPCO (-0.21%) respectively. On the flip side, the Consumer Goods and Oil and Gas Indices, the gainers, improved by 0.46% and 0.01% on GUINNESS (+10.00) and OANDO (+0.40%) respectively.
Investors’ sentiment strengthened but negative as the market breadth increased to 0.68x from 0.65x. This was illustrated by the decline of 22 stocks, led by RTBRISCOE (-10.00%) and BERGER (-9.64%) and the advance of 15 stocks, led by GUINNESS (+10.00%) and ROYALEX (+8.33%). Activity level was weakened as the total volume and value decreased by 64.38% and 30.17% respectively as investors exchanged about 213.57mn units of shares worth over ₦2.68bn.
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 bullish sentiment across the bond yield curve as three of the four bond yields under coverage closed lower albeit the yield on the FGN-JUL-2030 closed flat. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 compressed by 6bps, 2bps and 7bps respectively.
Treasury bill yield for the 91-day paper closed flat at 1.88% while the 182-day bond yield compressed by 54bps to close at 3.00%. The yield on the 364-day paper increased by 80bps to close at 3.87%.
We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.
- Local Bourse Starts the Week in Red, NGX ASI Sheds 7bps
- Bullish Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closes in Green
- Mixed Performance in African Stocks