Positive Performance Returns to the Domestic Bourse, NGX ASI Gains 124bps

By
Brand Spur
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The Nigerian All-Share Index declined, by 0.02% to close at 54,924.08 points. The performance was due to profit-taking in  bellwether stocks such as GTCO (-0.20%) and ACCESSCORP (-2.25%). Consequently, the YTD return decreased to 7.17% as market capitalisation decreased by ₦6.55 billion to close at 29.92 trillion.
Local Bourse Extend Losses

At the end of Yesterday’s trading session, the Nigerian All Share Index closed positive, advancing by 1.24% to close at 52,591.41 points.

Yesterday’s performance was due to buying pressures in large cap stocks such as NGXGROUP (+1.32%) and VITAFOAM (+0.22%). Consequently, the YTD return increased to 23.12% as market capitalisation increased by ₦345.98 billion to close at  ₦28.35 trillion.

The sectoral performance totally weakened as all the five indices under coverage declined. The Inurance index, the biggest loser, fell by 3.70% on NEM (-9.25%). The Banking, Consumer Goods, Oil & Gas, and Industrial Indices, followed suit, falling by 2.13, 1.33%, 0.76%, and 0.40% on ZENITHBANK (-1.67%), CHAMPION (-10.00%), ETERNA (-4.65%), and WAPCO (-5.53%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.24x from 0.41x. This was illustrated by the decline of 39 stocks, led by CHAMPION (-10.00%) and MCNICHOLS (-10.00%) and the advance of 10 stocks, led by CHAMS (+9.52%) and FTNCOCOA (+6.06%). Activity level was weakened as the total volume and value decreased by 46.90% and 52.25% respectively, as investors exchanged about 382.46mn units of shares worth over ₦4.23bn.

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

Fixed Income

There was bullish sentiment across the bond yield curve as three of the four bond yields under coverage contracted while the FGN-JUL-2030 bond paper closed flat. The FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond paper yield inched lower by 23bps, 1bp, and 1bp respectively.

Treasury bill yields for the 91, and 182-day bond papers closed flat at 2.99% and 3.61% while the 364-day bond paper inched up by 6bps to close  at  4.92%.

We expect market activity to be influenced by the outcome of the PMA today.

MARKET SNAPSHOT 

  • Positive Performance Returns in the Local Bourse, NGX ASI Gains 124bps
  • Bullish Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports at $110.92/barrel
  • Mixed Sentiments in African Stocks