Local Bourse Loses Grip of its Positive Streak as NGX ASI Dips 19bps

Profit-Taking Returns In Local Bourse
Profit-Taking Returns In Local Bourse

At the end of yesterday’s trading session, the Nigerian All Share Index closed the day in red, declining by 0.19% to close at 51,805.41 points after the bullish sentiment over the 18 consecutive trading days.

Yesterday’s performance was due to profit-taking in large-cap stocks such as MTNN (-3.61%) and ZENITHBANK (-0.21%). Consequently, the YTD return decreased to 21.28% as market capitalisation fell by ₦52.35 billion to close at  ₦27.93 trillion.

The sectoral performance strengthened as four of the five indices under coverage advanced. The Insurance index, the biggest gainer, rose by 2.14% on MANSARD (+4.55%). The Oil & Gas, Consumer Goods, and Industrial Indices, followed suit, rising by 0.97%, 0.78%, and 0.06% on OANDO (+7.14%), CADBURY (+9.73%) and WAPCO (+0.88%) respectively. Conversely, the Banking index, the only loser, fell by 0.06% on ZENITHBANK (-0.21%).

Investors’ sentiment strengthened as the market breadth increased to 2.77x from 1.76x. This was illustrated by the advance of 36 stocks, led by OKOMUOIL (+10.00%) and MAYBAKER (+10.00%) and the decline of 13 stocks, led by NAHCO (-4.12%) and GUINNESS (-9,59%). Activity level weakened as the total value and volume decreased by 1.79% and 9.34 respectively as investors exchanged about 331.52mn units of shares worth over ₦5.04bn.

Local Bourse Loses Grip of its Positive Streak as NGX ASI Dips 19bps - 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.

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Fixed Income
There was mixed sentiment across the bond yield curve as two of the four bond papers under coverage compressed, the FGN-APR-2023 closed flat while the yield on the FGN-JUL-2030 inched higher by 1bp. The yields on the FGN-MAR-2024 and FGN-JAN-2026 bond paper compressed by 1bp and 11bps.

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 

  • Local Bourse loses Grip of its Positive Streak, NGX ASI Dips 19bps
  • Mixed Sentiment across the Bond Yield Curve
  • Mixed Performance in Global Stocks
  • Commodities Market Closes in Red
  • Negative Performance in African Stocks