Bulls Outweighs The Bears In The Domestic Bourse

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The Bulls Suppress The Bears In The Local Bourse, NGX ASI Rebounds By 147bps
The Bulls Suppress The Bears In The Local Bourse, NGX ASI Rebounds By 147bps

Yesterday’s trading session saw the Nigerian equities market rebound from its four consecutive days’ decline, with a minimal increase of 0.02% to close at 47,163.94 points.

 

Yesterday’s performance was due to buying interest in large-cap stocks such as CAP (+10.00%) and COINOIL (+2.92%). Consequently, the YTD return increased to 10.41% as market capitalisation advanced by ₦3.98 billion to close at  ₦25.42 trillion.

The sectoral performance strengthened as three of the five indices under coverage improved, the Consumer Goods index closed flat while the Insurance index, the only loser declined by 0.18% on MBENEFIT (-7.41%).  The Banking Index, the biggest gainer, improved by 0.25% on ACCESS (+1.02%). The Oil and Gas and Industrial indices followed suit, rising by 0.11% and 0.08% on CONOIL (+2.92%) and CAP (+10.00%) respectively.

Investors’ sentiment was positive but flattish as the market breadth increased to 1.00x from 0.57x. This was illustrated by the advance of 16 stocks, led by CAP (+10.00%) and LEARNAFRCA (+9.60%) and the decline of 16 stocks, led by FCMB (-8.72%) and MBENEFIT (-7.41%). Activity level weakened as the total volume and value decreased by 11.86% and 17.61% respectively as investors exchanged about 267.48mn units of shares worth over ₦3.22bn.

Bulls Outweighs The Bears In The Domestic Bourse - Brand Spur

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 mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed lower, the yield on the FGN-JUL-2030 closed flat while the yield on the FGN-MAR-2024 increased by 62bps.

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The yields on the FGN-APR-2023, and FGN-JAN-2026 compressed by 2bps and 1bp respectively.

Treasury bill yield for the 91-day paper closed flat at 1.88% while the 182 and 364-day bond yields compressed by 4bps and 15bps to close at 3.00% and 3.87%.

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