Bullish Sentiment Persists but Flattish in the Local Bourse

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Bearish Sentiment in the Domestic Bourse, NGX ASI Dips 7bps
Bearish Sentiment in the Domestic Bourse, NGX ASI Dips 7bps

At the end of yesterdays trading session, the Nigerian All Share Index benchmark closed in green, advancing marginally by 0.01% to close at 48,571.75 points.

Yesterday’s performance was due to buying pressures in bellwether stocks such as PRESCO (+8.98%) and GUINNESS (+7.54%). Consequently, the YTD return increased to 13.71% as market capitalisation rose by ₦1.72 billion to close at  ₦26.19 trillion.

The sectoral performance was marginally weakened as three of the five indices under coverage declined. The Banking  index, the biggest loser, fell by 1.46% on ZENITHBANK (-2.62%). The Insurance and Oil and Gas indices, followed suit, decreasing by 0.85% and 0.72% on CORNERST (-6.06%) and ETERNA (-4.68%) respectively. Conversely. both Consumer Goods and Industrial Indices, the gainers, advanced by 0.68% and 0.37% on GUINNESS (+7.54%) and BUACEMENT (+0.96) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.78x from 1.17x. This was illustrated by the decline of 23 stocks led by IKEJAHOTEL (-9.68%) and LIVESTOCK (-9.50%) and the advance of 18 stocks, led by ACADEMY (+9.92%) and WEMABANK (+9.88%). Activity level was weakened as the total volume and value decreased by 46.91% and 66.89% respectively, as investors exchanged about 246.70mn units of shares worth over ₦2.32bn.

Bullish Sentiment Persists but Flattish in the Local 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

Read Also:  Local Bourse Maintains Positive Streak, NGX ASI Up 55bps

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage compressed, the FGN-JUL-2030 bond paper closed flat while the yield on the FGN-MAR-2024 inched higher by 25bps. The FGN-APR-2023 and  FGN-JAN-2026 bond papers compressed by 1bp and 9bps respectively.

Treasury bill yields for the 91 and 182-day paper closed flat at 3.25% and 3.52% respectively while the yield on the 364-day paper compressed by 18bps to close at 4.48%.

We expect market activity to be influenced by the liquidity levels

Market Snapshot