Local Bourse Starts the Week in Green, NGX ASI Up 34bps

Nigerian Stocks Sustain Bullish Momentum
Local Bourse Sustains Bullish Momentum

At the end of yesterday’s trading session, the Nigerian All Share Index closed positive, advancing by 0.34% to close at 53,086.46 points.

Yesterday’s performance was due to buying pressures in bellwether stocks such as MTNN (+1.96%) and CONOIL (+9.97%) Consequently, the YTD return increased to 24.28% as market capitalisation improved by ₦96.08 billion to close at  ₦28.62 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Insurance index, the biggest loser, fell by 0.44% on AIICO (-2.94%). The Banking and Consumer goods indices, followed suit, declining by 0.42% and 0.12% on ZENITHBANK (-0.43%) and FLOURMILL (-0.43%) respectively. Both the Oil & Gas and Industrial Indices, the gainers, improved by 0.68% and 0.05% on CONOIL (+9.97%) and WAPCO (+0.74%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.46x from 1.38x. This was illustrated by the advance of 19 stocks, led by CONOIL (+9.97%) and PHARMDEKO (+9.37%) and the decline of 13 stocks, led by JAPAULGOLD (-6.25%) and ABCTRANS (-6.06%). Activity level was strengthened as the total volume and value increased by 167.03% and 164.04%, as investors exchanged about 755.62mn units of shares worth over 8.90bn.

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

Fixed Income

There was bullish sentiment across the bond yield curve as three of the four bond yields under coverage declined while the yield on the FGN-MAR-2024 inched higher by 25bps. The yields on the FGN-APR-2023, FGN-JAN-2026 and FGN-JUL-2030 bond compressed by 2bps, 28bps and 1bp respectively.

Treasury bill yields for the 91 and 364-day paper closed flat at 3.22% and 5.07% respectively while the 182-day yield compressed by 19bps to close at 4.10%

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

 Market Snapshot 

  • Local Bourse Starts the Week in Green, NGX ASI Up 34bps
  • Bullish Sentiment across the Bond Yield Curve
  • Upward Trajectory in Global Stocks
  • Brent Crude reports @ $119.51/barrel
  • Positive Performance in African Stocks