At the end of yesterday’s trading session, the Nigerian All Share Index benchmark closed the week positive, advancing by 0.98% to close at 50,126.41 points.
Yesterday’s performance was due to buying pressures in bellwether stocks such as OKOMUOIL (+10.00%) and PRESCO (+9.97%). Consequently, the YTD return increased to 17.35% as market capitalisation rose by ₦271.8 billion to close at ₦27.02 trillion.
The sectoral performance weakened marginally as three of the five indices under coverage declined. The Insurance index, the biggest loser, fell by 3.77% on MANSARD (-7.79%). The Oil & Gas and Banking Indices followed suit, falling by 1.37% and 0.98% on OANDO (-10.00%) and ZENITHBANK (-1.43%) respectively. Conversely, both the Consumer Goods and Industrial Index, rose by, 3.30% and 2.97% on NB (+9.98%) and BUACEMENT (+8.16%) respectively.
Investors’ sentiment weakened but positive as the market breadth decreased to 1.15x from 2.92x. This was illustrated by the decline of 27 stocks led by OANDO (-10.00%) and TRANSFERXPR (+9.88%) and the advance of 31 stocks, led by OKOMUOIL (+10.00%) and WEMABANK (+10.00%). Activity level weakened as the total volume and value decreased by 89.55% and 80.19% respectively, as investors exchanged about 669.30mn units of shares worth over ₦5.98bn.
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 bearish sentiment across the bond yield curve as three of the four bond papers under coverage inched higher while the FGN-MAR-2024 bond paper compressed by 4bps. The yields on the FGN-APR-2023, FGN-JAN-2026 and FGN-JUL-2030 bond papers inched higher by 1bp, 6bps, and 17bps respectively.
Treasury bill yields for the 91 and 182-day paper closed flat at 3.25% and 3.51% respectively while the yield on the 364-day paper compressed by 1bp to close at 4.47%.
We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.
Market Snapshot
- Bulls Dominate the Local Bourse after Eid-Mubarak Break, NGX ASI Gains 98bps
- Bearish Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closes in Red
- Mixed Performance in African Stocks
