The Bears Outweigh the Bulls in the Domestic Bourse

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The Nigerian equities market posted a loss at the end of yesterday’s trading session with the benchmark index declining by 0.02% to close at 46,766.16 points.

Yesterday’s performance was due to profit-taking in heavyweight stocks such as ZENITHBANK (-0.44%) and GTCO (-1.12%). Consequently, the YTD return decreased to 9.48% as market capitalisation fell by ₦6.04 billion to close at  ₦25.21 trillion.

The sectoral performance was mixed as three of the five indices under coverage declined while the Industrial index closed flat. The Insurance index, the biggest gainer, climbed up by 0.48% on LINKASSURE (+8.51%). The Oil & Gas and Banking indices, followed suit, rising by 0.20% and 0.15% on SEPLAT (+1.05%) and UBA (+1.97%) respectively. Conversely, the Consumer Goods index, the only loser, fell by 0.22% on NB (-1.11%).

Investors’ sentiment weakened as the market breadth decreased to 0.89x from 0.90x. This was illustrated by the decline of 18 stocks, led by NPFMCRFBK (-9.78%) and RTBRISCOE (-8.93%) and the advance of 16 stocks, led by REGALINS (+10.00%) and LIVESTOCK (+9.59%). Activity level strengthened as the total volume and value increased by 1.62% and 3.91% respectively as investors exchanged about 261.59mn units of shares worth over N2.43bn.

The Bears Outweigh the Bulls in the Domestic Bourse - 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 compressed, 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.

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Treasury bill yields for the 91, 182 and 364-day paper closed flat at 1.88%, 3.04%, and 4.48% respectively.

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

MARKET SNAPSHOT

  • The Bears Outweigh the Bulls in the Domestic Bourse, NGX ASI Sheds 2bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude Reports at $104.42/barrel
  • Negative Performance in African Stocks