Downward Trajectory Persists In The Local Bourse

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Local Bourse Bounces Back To Bullish Mood
Local Bourse Bounces Back To Bullish Mood

At the end of yesterday’s trading session, the Nigerian All Share Index closed negative, declining by 0.64% to close at 52,775.40 points.

Yesterdays performance was due to sell pressures in large-cap stocks such as MTNN (-2.38%) and NGXGROUP (-0.80%). Consequently, the YTD return decreased to 23.55% as market capitalisation declined by ₦182.36 billion to close at ₦28.45 trillion.

The sectoral performance was marginally weakened as three of the five indices under coverage declined. The Banking index, the biggest loser, fell by 2.01% on ZENITHBANK (-1.98%). The Insurance and Consumer Goods indices, followed suit, falling by 0.87% and 0.53% on LINKASSURE (-8.93%) and INTBREW (-6.12%) respectively. Conversely, the Oil & Gas and Industrial indices, the gainers, rose by 0.07% and 0.04% on OANDO (+0.52%) and  WAPCO (+0.72%).

Investors’ sentiment strengthened but negative as the market breadth improved to 0.42x from 0.32x. This was illustrated by the decline of 26 stocks, led by MEYER (-10.00%) and LINKASSURE (-8.93%) and the advance of 11 stocks, led by TRIPPLEG (+9.20%) and LEARNAFRCA (+5.49%). Activity level weakened as the total volume and value decreased by 37.30% and 23.76% respectively, as investors exchanged about 188.09mn units of shares worth over ₦2.36bn.

Downward Trajectory Persists In The Local Bourse - 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

Read Also:  Domestic Bourse Sustains Upward Trajectory, NGX ASI Up 35bps

There was bullish sentiment across the bond yield curve as three of the four bond yields under coverage compressed while the FGN-APR-2023 inched higher by 16bps. The FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers compressed by 1bp, 1bp and 2bps respectively.

The 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 29bps and 14bps to close at 4.72% and 6.59% respectively.

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

MARKET SNAPSHOT

  • Downward Trajectory Persists in the Local Bourse, NGX ASI Sheds 64bps
  • Bullish Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports @ $120.40/barrel
  • Negative Performance in African Stocks