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.
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
- 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