Positive Performance Returns In The Domestic Bourse

Nigerian Stock Market Closes Week In Red
Nigerian Stock Market Closes Week In Red

At the end of yesterday’s trading session, the Nigerian All Share Index closed in green as the benchmark index advanced by 0.19% to close at 46,777.37 points. Yesterday’s performance was due to buying pressure in bellwether stocks such as SEPLAT (+2.15%) and ZENITHBANK (+3.41%). Consequently, the YTD return increased to 9.51% as market capitalisation rose by ₦48.26 billion to close at  ₦25.22 trillion.

The sectoral performance weakened as three of the five indices under coverage declined. The Insurance index, the biggest loser, decreased by 0.93% on CORNERST (-4.76%). The Consumer and Industrial Indices, followed suit, falling by 0.34% and 0.05% on NASCON (-5.43%) and WAPCO (-0.91%) respectively. Conversely, the Banking and Oil & Gas Indices, the gainers, inched up by 1.73% and 0.27%  on ZENITHBANK (+3.41%) and SEPLAT ( +2.15%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.90x from 1.16x. This was illustrated by the decline of 20 stocks, led by NPFMCRFBK (-9.64%) and LEARNAFRCA (-9.14%) and the advance of 18 stocks, led by MEYER (+8.86%) and REGALINS (+7.14%). Activity level strengthened as the total volume and value increased by 17.27% and 21.23% respectively as investors exchanged about 257.41mn units of shares worth over N2.34bn.

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 compressed, the yield on the FGN JUL-2030  advanced by 1bp while the yield on the FGN-MAR-2024 closed flat. The yields on the FGN-APR-2023 and FGN-JAN-2026  compressed by 2bps and 1bp respectively.

Treasury bill yields for the 91-day paper closed flat at 1.88% while the yields on the 182 and 364-day papers compressed by 4bps and 18bps to close at 3.04% and 4.48% respectively.

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