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

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Domestic Bourse Sustains Upward Trajectory, NGX ASI Up 35bps
Domestic Bourse Sustains Upward Trajectory, NGX ASI Up 35bps

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.

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

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

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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