Local Bourse Closes the Week in Green after a 4-Day Losing Streak

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Domestic Bourse Reverses Previous Day`s Gain, NGX ASI Dips 31bps
Domestic Bourse Reverses Previous Day`s Gain, NGX ASI Dips 31bps

At the end of yesterday’s trading session, the Nigerian All Share Index closed positive, improving 0.13% to close at 52,908.24 points.

Yestersday’s performance was due to buying pressures in bellwether stocks such as NB (+7.06%) and ZENITHBANK (+1.96%) Consequently, the YTD return increased to 23.86% as market capitalisation improved by ₦49.85 billion to close at  ₦28.52 trillion.

The sectoral performance significantly strengthened as four of the five indices under coverage improved while the Industrial index, the sole loser, declined by 0.03% on WAPCO (-0.18%). The Insurance index, the biggest gainer, rose by 9.95% on NEM (+9.95%). The Banking, Consumer goods and Oil & Gas indices followed suit, improving by 0.95%, 0.57% and 0.53% on ZENITHBANK (+1.93%), NEM (+9.95%) and ETERNA (+6.65%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.38x from 0.52x. This was illustrated by the advance of 22 stocks, led by NEM (+9.95%) and CHAMS (+9.09%) and the advance of 16 stocks, led by UPDCREIT (-9.33%) and WAPIC (-4.55%). Activity level was mixed as the total volume increased by  3.11% while the total value declined by 16.34%, as investors exchanged about 282.97mn units of shares worth over 3.37bn.

Local Bourse Closes the Week in Green after a 4-Day Losing Streak - Brand Spur

We expect negative sentiment to persist on the back of profit-taking activities on stocks that have significantly appreciated.

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 Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed flat, the yield on the FGN-MAR-2024 compressed by 1bp while the FGN-JAN-2026 bond yield inched up 8bps The yields on the FGN-APR-2023 and FGN-JUL-2030 bond paper closed flat at 5.03% and 11.30% respectively.

Treasury bill yields for the 91, 182 and 364-day closed flat at 3.22%, 4.29% and 5.07%.

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

MARKET SNAPSHOT

  • Local Bourse Closes the Week in Green after a 4-Day Losing Streak, NGX ASI Up 13bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude reports @ $119.37/barrel
  • Mixed Sentiment in African Stocks