At the end of yesterday’s trading session, the Nigerian All Share Index closed in red, declining by 0.07% to close at 52,721.34 points.
Yesterday’s performance was due to sell-offs in large-cap stocks such as WAPCO (-2.41%) and NGXGROUP (-4.58%). Consequently, the YTD return decreased to 23.42% as market capitalisation decreased by ₦19.02 billion to close at ₦28.42trillion.
The sectoral performance strengthened as four of the five indices under coverage advanced. The Insurance index, the biggest gainer, rose by 0.81% on MANSARD (+4.55%). The Consumer goods, Oil & Gas and Banking Indices, followed suit, rising by 0.29%, 0.19% and 0.10%, on PZ (+1.89%), OANDO (+1.30%) and ZENITHBANK (+1.24%) respectively. Conversely, the Industrial Index, the sole loser, fell by 0.19% on WAPCO (-2.41%).
Investors’ sentiment strengthened but negative as the market breadth increased to 0.87x from 0.77x. This was illustrated by the decline of 23 stocks, led by ACADEMY (-9.20%) and BERGER (-8.39%) and the advance of 20 stocks, led by MCNICHOLS (+9.94%) and TRANSCOHOT (+9.84%). Activity level was weakened as the total volume and value decreased by 53.77% and 3.86% respectively, as investors exchanged about 611.97mn units of shares worth over ₦7.43bn.
We expect negative sentiment to persist on the back of profit-taking on stocks that have appreciated significantly
There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage inched higher, the FGN-APR-2023 bond paper closed flat while the FGN-JUL-2030 bond paper compressed by 11bps. The yields on the FGN-MAR-2024 and FGN-JAN-2026 bond papers increased by 1bp and 8bps respectively.
Treasury bill yields for the 91, 182 and 364-day bond papers closed flat at 2.99%, 3.61% and 4.86% respectively.
We expect market activity to be influenced by the liquidity levels and foreign investors’ participation.
- Bearish Sentiment in the Domestic Bourse, NGX ASI Dips 7bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closes in Red
- Negative Performance in African Stocks