Bears Outweighs The Bulls To Start The Week In Red, NGX ASI Sheds 16bps

0
The Domestic Bourse Starts the Week in Green, NGX ASI Up 190bps
The Domestic Bourse Starts the Week in Green, NGX ASI Up 190bps

At the end of today’s trading session, the Nigerian All Share Index closed in negative territory, declining by 0.16% to close at 53,113.64 points.

Today’s performance was due to selloffs in large-cap stocks such as STANBIC (-2.35%) and WAPCO (-1.07%). Consequently, the YTD return decreased to 24.34% as market capitalisation declined by ₦47.31 billion to close at ₦28.63 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined, one improved while the Consumer goods index closed flat. The Oil & Gas index, the biggest loser, fell by 0.46% on OANDO (-3.33%).

The Banking and Industrial indices, followed suit, falling by 0.35% and 0.11% on STANBIC (-2.35%) and WAPCO (-1.07%) respectively. The insurance index, the sole gainer, rose by 0.16% on CORNERST (+1.62%).

Investors’ sentiment weakened as the market breadth declined to 0.32x from 0.88x. This was illustrated by the decline of 25 stocks, led by CAP (-9.93%) and CAVERTON (-7.83%) and the advance of 8 stocks, led by LEARNAFRCA (+9.72%) and SUNUASSUR (+9.37%).

Activity level strengthened as the total volume and value increased by 9.79% and 17.11% respectively, as investors exchanged about 299.99mn units of shares worth over ₦3.09bn.

Read Also:  Cape Town And Stockholm Team Up To Support Women In Tech

Bears Outweighs The Bulls To Start The Week In Red, NGX ASI Sheds 16bps - Brand Spur

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

Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage inched higher while the yields on the FGN-MAR-2024 and FGN-JUL-2030 bond paper compressed by 3bps and 4bps respectively. Conversely, the FGN-APR-2023 and FGN-JAN-2026 bond paper yields increased by 100bps and 4bps respectively.

Treasury bill yield for the 91-day paper closed flat at 3.48% while the yields on the 182 and 364-day paper inched higher by 27bps and 139bps to close at 4.43% and 6.45% respectively.

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

Market Snapshot

  • Bears Outweighs the Bulls to Start the Week in Red, NGX ASI Sheds 16bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude Reports @ $124.69/barrel
  • Negative Performance in African Stocks