Local Bourse Starts the Week in Red, NGX ASI Sheds 13bps

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Domestic Bourse Starts the Week in Green, NGX ASI Up 50bps
Domestic Bourse Starts the Week in Green, NGX ASI Up 50bps

At the end of yesterday’s trading session, the Nigerian All Share Index closed negative, declining by 0.13% to close at 52,911.51 points.

Yesterday’s performance was due to profit-taking in bellwether stocks such as PRESCO (-10.00%) and STANBIC (-0.29%). Consequently, the YTD return decreased to 23.87% as market capitalisation decreased by ₦36.91 billion to close at  ₦28.53trillion.

The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Oil & Gas index, the biggest gainer, rose by 0.28% on CONOIL (+9.95%). The Banking, and Consumer Goods Indices, followed suit, rising by 0.10%, 0.05% on ETI (+0.42%), and FLOURMILL (+0.54%) respectively. Conversely, the Insurance and Industrial Indices, the losers, fell by 2.32% and 0.09% on NEM (-7.74%) and WAPCO (-1.22%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.92x from 1.08x. This was illustrated by the decline of 24 stocks, led by PRESCO (-10.00%) and GSPECPLC (-9.97%) and the advance of 22 stocks, led by CONOIL (+9.95%) and MRS (+9.93%). Activity level was mixed as the total volume decreased by 39.68% while the total value increased by 10.15%, as investors exchanged about 263.34mn units of shares worth over ₦3.55bn.

Local Bourse Starts the Week in Red, NGX ASI Sheds 13bps - Brand Spur

We expect bearish sentiment to persist in the next trading session due to profit-taking activities.

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Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage contracted while the FGN-APR-2023 and FGN-JAN-2026 bond paper closed flat. The FGN-MAR-2024 and FGN-JUL-2030 bond papers contracted by 3bps and 2bps 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 outcome of the PMA later in the week.

Market Snapshot

  • Local Bourse Starts the Week in Red, NGX ASI Sheds 13bps
  • Mixed Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports at $110.65/Barrel
  • Mixed Performance in African Stocks