At the end of yesterday’s trading session, the Nigerian All Share Index closed in negative territory, declining by 0.03% to close at 52,974.15 points.
Yesterday’s performance was due to profit-taking in bellwether stocks such as OKOMUOIL (-10.00%) and CONOIL (-8.35%). Consequently, the YTD return decreased to 24.01% as market capitalisation decreased by 8.70 billion to close at ₦28.56 trillion.
The sectoral performance weakened as four of the five indices under coverage declined. The insurance index, the biggest loser, fell by 0.49% on AIICO (-1.45%). The Consumer Goods, Banking and Oil & Gas indices followed suit, falling by 0.31%, 0.30% and 0.20% on FLOURMILL (-0.57%), FBNH (-4.62%) and CONOIL (-8.35%) respectively. The Industrial index closed flat.
Investors’ sentiment weakened as the market breadth decreased to 0.70x from 1.47x. This was illustrated by the decline of 20 stocks, led by OKOMUOIL (-10.00%) and NCR (-9.77%) and the advance of 14 stocks, led by ETERNA (+9.90%) and FTNCOCOA (+9.38%). Activity level was weakened as the total volume and value decreased by 7.20% and 3.32% respectively, as investors exchanged about 295.35mn units of shares worth over ₦3.59bn.
We expect negative sentiment to persist on the back of profit-taking activities on stocks that have significantly appreciated.
Fixed Income
There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed flat, the FGN-APR-2023 bond paper inched higher by 1bp while the yield on the FGN-JAN-2026 compressed by 65bps. The FGN-MAR-2024 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
Market Snapshot
- Domestic Bourse Starts the Month in Red, NGX ASI Sheds 3bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closes in Red
- Negative Sentiment in African Stocks
