At the end of today’s trading session, the Nigerian All Share Index closed in red, declining by 0.69% to close at 52,411.09 points.
Today’s performance was due to sell pressures in large-cap stocks such as AIRTELAFRI (-1.19%) and BUAFOODS (-9.97%). Consequently, the YTD return decreased to 22.70% as market capitalisation declined by ₦196.4 billion to close at ₦28.26 trillion.
The sectoral performance was weakened as four of the five indices under coverage declined. The Oil & Gas index, the biggest loser, fell by 0.83% on CONOIL (-10.00%). The Banking, Insurance and Industrial indices, followed suit, falling by 0.62%, 0.28% and 0.01% on ZENITHBANK (-1.35%), MANSARD (-4.23%) and CUTIX (-4.94%) respectively. Conversely, the Consumer Goods index, the sole gainer, rose by 0.01% on HONYFLOUR (+0.96%).
Investors’ sentiment strengthened but negative as the market breadth improved to 0.57x from 0.42x. This was illustrated by the decline of 21 stocks, led by CONOIL (-10.00%) and BUAFOODS (-9.97%) and the advance of 12 stocks, led by LINKASSURE (+9.80%) and COURTVILLE (+8.00%). Activity level was strengthened as the total volume and value increased by 12.51% and 0.09% respectively, as investors exchanged about 211.61mn units of shares worth over ₦2.37bn.
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 compressed, the FGN-JUL-2030 bond paper closed flat while the FGN-MAR-2024 bond paper rose by 22bps. The FGN-APR-2023 and FGN-JAN-2026 bond papers compressed by 15bsp and 3bps respectively.
The Treasury bill yield for the 91-day paper closed flat at 3.48% while the yield on the 182-day paper inched higher by 67bps to close at 5.39%. On the flip side, the yield on the 364-day paper compressed by 49bps to close at 6.10%.
We expect market activity to be influenced by the liquidity levels in the financial system
Market Snapshot
- Bearish Sentiment Persists in the Domestic Bourse, NGX ASI Sheds 69bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports @ $117.88/barrel
- Negative Performance in African Stocks
