Local Bourse Extends Negative Momentum, NGX ASI Dips Further By 20bps

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Bullish Dominance in the Local Bourse as NGX ASI Inches up by 0.34%
Bullish Dominance in the Local Bourse as NGX ASI Inches up by 0.34%

At the end of yesterday’s trading session, the Nigerian equities market maintained its bearish streak with 0.20% depreciation to close at 47,156.56 points.

Yesterday’s performance was due to selloffs in heavyweight stocks such as WAPCO (-1.25%) and ZENITHBANK (-0.19%). Consequently, the YTD return decreased to 10.39% as market capitalisation fell by ₦51.40 billion to close at  ₦25.41 trillion.

The sectoral performance weakened as all of the five indices under coverage declined. The Consumer Goods index, the biggest loser, decreased by 1.55% on WAPCO (-1.25%).  The Insurance, Oil & Gas, Banking, and Industrial indices followed suit, falling by 1.38%, 1.01%, 0.38%, and 0.08% on MANSARD (-6.52%), OANDO (-6.75%), ZENITHBANK (-0.19%), and WAPCO (-0.21%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.57x from 0.68x. This was illustrated by the decline of 28 stocks, led by JAPAULGOLD (-8.82%) and CHAMPION  (-8.78%) and the advance of 16 stocks, led by NPFMCRFBK (+9.52%) and FCMB (+7.94%). Activity level strengthened as the total volume and value increased by 42.10% and 45.87% respectively as investors exchanged about 303.48mn units of shares worth over ₦3.90bn.

Local Bourse Extends Negative Momentum, NGX ASI Dips Further By 20bps - 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.

Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed higher, the yield on the FGN-MAR-2024 compressed by 1bp while the yield on the FGN-JUL-2030 closed flat.

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The yields on the FGN-APR-2023, and FGN-JAN-2026 inched up by 6bps, and 11bps respectively.

Treasury bill yield for the 91-day paper closed flat at 1.88% while the 182 and 364-day bond yields inched up by 4bps and 15bps to close at 3.04% and 4.02%.

We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.

 MARKET SNAPSHOT

  • Local Bourse Extends Negative Momentum, NGX ASI Dips Further by 20bps
  • Mixed Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Commodities Market Closes in Red
  • Positive Performance in African Stocks