Bulls Dominance Returns in the Local Bourse, NGX ASI Gains 105bps

Bearish Sentiment Persists in the Local Bourse
Bulls Dominance Returns in the Local Bourse, NGX ASI Gains 105bps

At the end of yesterday’s trading session, the Nigerian All Share Index closed in positive territory, advancing by 1.05% to close at 53,275.49 points.

Yesterday’s performance was due to buy pressures in large-cap stocks such as MTNN (+5.68%) and BETAGLAS (+9.74%). Consequently, the YTD return decreased to 24.72% as market capitalisation decreased by ₦298.75 billion to close at  ₦28.72trillion.

The sectoral performance weakened as four of the five indices under coverage declined. The Insurance index, the biggest loser, fell by 1.33% on MANSARD (-4.35%). The Oil & Gas, Banking and Consumer Goods Indices, followed suit, falling by 0.79%, 0.76% and 0.23% on ARDOVA (-4.00%), ZENITHBANK (-0.41%) and UNILEVER (-1.33%) respectively. Conversely, the Industrial Index, the sole gainer, rose by 0.14% on BETAGLAS (+9.74%).

Investors’ sentiment weakened but remained negative as the market breadth decreased to 0.75x from 0.87x. This was illustrated by the decline of 28 stocks, led by CONOIL (-10.00%) and ETERNA (-9.59%) and the advance of 21 stocks, led by TRANSCOHOT (+9.89%) and BETAGLAS (+9.74%). Activity level was mixed as the total volume decreased by 55.14% while the total value increased by 13.75%, as investors exchanged about 274.56mn units of shares worth over ₦8.45bn.

Bulls Dominance Returns in the Local Bourse, NGX ASI Gains 105bps - Brand Spur
We expect negative sentiment to return on the back of profit-taking on stocks that have appreciated significantly.

Fixed Income

Read Also:  3 Top Utility Stocks To Buy To Help Pay Your AC Bill

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage contracted, the FGN-APR-2023 and FGN-JAN-2026 bond papers closed flat. The FGN-MAR-2024 and FGN-JUL-2030 bond papers contracted by 1bp and 4bps 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 

  • Positive Performance Returns in the Local Bourse, NGX ASI Gains 105bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude Reports at 108.59
  • Mixed Performance in African Stocks