The Domestic Bourse Starts the Week in Green, NGX ASI Up 190bps

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Domestic Bourse Extends Bullish Run
Domestic Bourse Extends Bullish Run

At the end of yesterday’s trading session, the Nigerian All Share Index starts the week in positive territory, advancing by 1.90% to close at 51,902.48 points.

Yesterday’s performance was supported by sustained buy pressures in large-cap stocks such as MTNN (+9,45%) and PRESCO (+4.71%). Consequently, the YTD return increased to 21.50% as market capitalisation rose by ₦521.56 billion to close at  ₦27.98 trillion.

The sectoral performance marginally strengthened as three of the five indices under coverage advanced. The Consumer Goods index, the biggest gainer, rose by 2.15% on NB (+10.00%). The Oil & Gas, and Industrial Indices followed suit, rising by 0.47% and 0.21% on CONOIL (+9.38%) and WAPCO (+2.73%) respectively. Conversely, both Insurance and Banking indices, the losers, fell by 1.27% and 0.28% on AIICO (-5.00%) and ZENITHBANK (-0.61%) respectively.

Investors’ sentiment weakened but positive as the market breadth decreased to 1.76x from 3.07x. This was illustrated by the advance of 37 stocks, led by NB (+10.00%) and CADBURY (+9.96%) and the decline of 21 stocks, led by TRANSCOHOT (-10.00%) and GUINNESS (-9,59%). Activity level was mixed as the total volume decreased by 27.61% while the total value advanced by 4.63%, as investors exchanged about 337.56mn units of shares worth over ₦5.55bn.

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 papers under coverage closed flat, the yield on the FGN-APR-2023 bond paper inched higher by 2bps while the yield on the FGN-MAR-2024 compressed by 2bps. The FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 10.61% and 11.72% respectively.

Treasury bill yields for the 91, 182, and 364-day papers closed flat at 2.51%, 3.51%, and 4.47% respectively.

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

Market Snapshot

The Domestic Bourse Starts the Week in Green, NGX ASI Up 190bps

  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Red
  • Mixed Performance in African Stocks