At the end of yesterday’s trading session, the Nigerian All Share Index closed in red, declining by 0.35% to close at 52,756.62 points.
Yesterday’s performance was due to sustained profit taking in large-cap stocks such as MTNN (-1.73%) and FLOURMILL (-9.20%). Consequently, the YTD return decreased to 23.50% as market capitalisation decreased by ₦101.07 billion to close at ₦28.44trillion.
The sectoral performance weakened as four of the five indices under coverage declined. The Consumer goods index, the biggest loser, fell by 0.54% on FLOURMILL (-9.20%). The Banking, Oil & Gas and Insurance Indices, followed suit, falling by 0.39%, 0.31% and 0.21%, on ZENITHBANK (-1.03%), ARDOVA (-1.32%) and AIICO (-1.27%) respectively. Conversely, the Industrial Index, the sole gainer, rose by 0.05% on JBERGER (+2.35%).
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Investors’ sentiment weakened as the market breadth decreased to 0.77x from 1.30x. This was illustrated by the decline of 26 stocks, led by FLOURMILL (-9.20%) and GLAXOSMITH (-8.395%) and the advance of 20 stocks, led by PZ (+9.96%) and BERGER (+9.72%). Activity level was strengthened as the total volume and value increased by 253.77% and 55.62% respectively, as investors exchanged about 1.32bn units of shares worth over ₦7.72bn.
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.
Fixed Income
There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage compressed, while the FGN-APR-2023 and FGN-JAN-2026 bond paper closed flat. The FGN-MAR-2024 and FGN-JUL-2030 bond papers compressed by 1bp and 10bps 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.
Market Snapshot
- Profit-Taking Activities Persists in the Domestic Bourse, NGX ASI Dips 35bps
- Mixed Sentiment across the Bond Yield Curve
- Positive Performance in Global Stocks
- Commodities Market Closes in Green
- Positive Performance in African Stocks
