Bullish Sentiment Persists in the Domestic Bourse, NGX ASI Gains 106bps

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Bullish Sentiment Persists in the Domestic Bourse, NGX ASI Gains 106bps
Bullish Sentiment Persists in the Domestic Bourse, NGX ASI Gains 106bps

At the end of yesterday’s trading session, the Nigerian All Share Index closed in green, advancing by 1.06% to close at 53,151.32 points.

Yesterday’s performance was due to buying pressures in bellwether stocks such as MTNN (+4.35%) and GUINNESS (+5.10%). Consequently, the YTD return increased to 24.43% as market capitalisation increased by ₦301.86 billion to close at  ₦28.65 trillion.

The sectoral performance strengthened as four of the five indices under coverage advanced. The Banking index, the biggest gainer, rose by 1.22% on ZENITHBANK (+1.06%). The Consumer Goods, Industrial and Insurance Indices, followed suit, rising by 0.93%, 0.42%, and 0.42% on GUINNESS (+5.10%), WAPCO (+6.23%) and LINKASSURE (+9.09%) respectively. The Oil & Gas index, the sole loser, declined by 0.30% on OANDO (-2.24%).

Investors’ sentiment strengthened as the market breadth increased to 2.45x from 0.24x. This was illustrated by the advance of 27 stocks, led by IMG (+10.00%) and CHAMPION (+9.94%) and the decline of 11 stocks, led by NPFMCRFBK (-9.90%) and UACN (-9.69%). Activity level was mixed as the total volume decreased by 30.40% while the total value increased by 20.81%, as investors exchanged about 266.18mn units of shares worth over ₦5.16bn.

Bullish Sentiment Persists in the Domestic Bourse, NGX ASI Gains 106bps - Brand Spur

We expect positive sentiment to persist in the next trading session as the equities market still presents decent opportunities for investors chasing positive real returns on investments.

Fixed Income

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There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage inched higher, the FGN-JUL-2030 bond paper closed flat while the yield on the FGN-MAR-2024 compressed by 1bp. The FGN-APR-2023 and FGN-JAN-2026 bond paper yields climbed up by 4bps and 52bps respectively.

Treasury bill yield for the 364-day paper closed flat at 4.92% while the 182-day paper inched higher by 99bps to close at 4.60%. Conversely, the yield on the 91-day paper yield, contracted by 27bps to close at 2.72%.

We expect market activity to be influenced by the liquidity levels in the financial system

Market Snapshot