Sustained Buy Pressures in the Domestic Bourse as NGX ASI Increases by 142bps

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Local Bourse Starts the Week in Red, NGX ASI Dips 29bps
Local Bourse Starts the Week in Red, NGX ASI Dips 29bps

At the end of yesterday’s trading session, the Nigerian All Share Index benchmark closed in green, advancing by 1.42% to close at 50.835.95 points.

Yesterday’s performance was supported by sustained buying interest in large cap stocks such as GUINNESS (+10.00%) and PRESCO (+7.80%). Consequently, the YTD return increased to 19.01% as market capitalisation rose by ₦373.52 billion to close at  ₦27.41 trillion.

The sectoral performance strengthened marginally as three of the five indices under coverage advanced. The Consumer goods index, the biggest gainer, rose by 2.36% on GUINNESS (+10.00%). The Insurance and Industrial Indices followed suit, rising by 0.87% and 0.12% on AIICO (+0.80%) and WAPCO (+1.69%) respectively. On the flip side, both the Oil & Gas and Banking Indices, fell by 0.51% and 0.08% on OANDO (-7.41%) and GTCO (-1.88%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.48x from 1.15x. This was illustrated by the advance of 31 stocks, led by MCNICHOLS (+10.00%) and GUINNESS (+10.00%) and the decline of 21 stocks, led by TRANSCOHOT (-9.09%) and MULTIVERSE (-8.70%). Activity level was mixed as the total volume decreased by 30.88% while the total value advanced by 38.68%, as investors exchanged about 462.60mn units of shares worth over ₦8.31bn.

Sustained Buy Pressures in the Domestic Bourse as NGX ASI Increases by 142bps - 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.

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Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond papers under coverage declined, the FGN-APR-2023 bond paper closed flat while the yield on the  FGN-JUL-2030 bond papers inched higher by 19bps. Both yields on the FGN-MAR-2024 and FGN-JAN-2026 bond paper compressed by 1bp and 4bps respectively.

Treasury bill yields for the 91-day paper compreesed by 74bps to close at 2.51% while the yield on the 182 and 364-day paper closed flat at 3.51% and 4.47% respectively.

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

Market Snapshot

  • Sustained Buy Pressures in the Domestic Bourse, NGX ASI Up 142bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Green
  • Mixed Performance in African Stocks