At the end of yesterday’s trading session, the Nigerian All Share Index closed negative, declining by 1.45% to close at 52,990.28 points.
Yesterday’s performance was due to profit-taking in bellwether stocks such as NB (-9.96%) and FLOURMILL (-0.98%). Consequently, the YTD return decreased to 24.05% as market capitalisation decreased by ₦421.51 billion to close at ₦28.57 trillion.
The sectoral performance weakened significantly as four of the five indices under coverage declined. The Industrial index, the biggest loser, fell by 3.60% on WAPCO (-2.35%). The Consumer Goods, Banking and Insurance Indices, followed suit, falling by 1.78%, 0.15% and 0.13% on FLOURMILL (-0.98%), ZENITHBANK (-1.68%) and ROYALEX (-1.92%) respectively. Conversely, the Oil & Gas index, the only gainer, rose by 0.05 on ARDOVA (+0.66%).
Investors’ sentiment weakened as the market breadth decreased to 1.18x from 1.47x. This was illustrated by the decline of 17 stocks, led by NB (-9.96%) and NNFM (-9.83%) and the advance of 20 stocks, led by TRANSCOHOT (+6.84%) and CHAMPION (+5.05%). Activity level was weakened as the total volume and value decreased by 98.85% and 98.09% respectively, as investors exchanged about 318mn units of shares worth over ₦3.71bn.
We expect negative sentiment to persist on the back of profit-taking activities on stocks that have significantly appreciated.
There was a relatively quiet outing across the bond yield curve as three of the four bond yields under coverage closed flat while the FGN-MAR-2024 bond paper compressed by 1bp. The FGN-APR-2023, FGN-JAN-2026 and FGN-JUL-2030 bond paper yields closed flat respectively.
Treasury bill yields for the 91, 182 and 364-day paper closed flat at 2.72%, 4.29% and 4.92% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Domestic Bourse Extends Negative Trajectory, NGX ASI Sheds 145bps
- Quiet Outing across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports at $119.08/barrel
- Negative Sentiment in African Stocks