Local Bourse Offsets Mid-Week Losses to Close the Week Positive, NGX ASI Up 6bps

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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 in green, advancing by 0.06% to close at 53,210.38 points.

Yesterday’s performance was due to buying interest in large-cap stocks such as PRESCO (+2.96%) and STANBIC (+1.19%). Consequently, the YTD return increased to 24.55% as market capitalisation advanced by ₦16.52 billion to close at ₦28.68 trillion.

The sectoral performance was mixed as two of the five indices under coverage improved, two declined while the Industrial index closed flat. The Banking and Consumer goods indices, the gainers, rose by 0.06% and 0.02% on STANBIC (+1.19%) and CADBURY (+1.47%) respectively. Conversely, both the Insurance and Oil & Gas indices, the losers, fell by 0.50% and 0.46% on AIICO (-2.94%) and OANDO (-3.23%) respectively.

Investors’ sentiment was flattish but negative as the market breadth remained constant at 0.88x. This was illustrated by the decline of 16 stocks, led by MRS (-9.76%) and TIP (-9.09%) and the advance of 14 stocks, led by FIDSON (+9.59%) and FTNCOCOA (+9.09%). Activity level weakened as the total volume and value decreased by 14.19% and 20.72% respectively, as investors exchanged about 273.24mn units of shares worth over ₦2.65bn.

Local Bourse Offsets Mid-Week Losses to Close the Week Positive, NGX ASI Up 6bps - Brand Spur

We expect positive sentiment to persist in the next trading session as the equities market still presents decent opportunities for investors chasing positive real returns on investments.

Read Also:  Negative Performance Persists In The Local Bourse

Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage inched higher, the FGN-MAR-2024 bond paper yield compressed by 1bp while the yield on the FGN-JAN-2026 bond paper closed flat. The FGN-APR-2023 and FGN-JUL-2030 bond papers yields advanced by 6bps and 2bps respectively.

Treasury bill yield for the 91-day paper closed flat at 3.48% while the yield on the 182-day paper inched higher by 27bps to close at 4.16%. On the flip side, the 364-day paper yield compressed by 1bp to close at 5.06%.

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

Market Snapshot