Domestic Bourse Starts The Week In Red

Domestic Bourse Starts The Week In Red
Domestic Bourse Starts The Week In Red

The Nigerian All Share Index closed negative at the end of yesterday’s trading session, declining by 1.97% to close at 50,756.74 points.

Yesterday’s performance was due to profit-taking in bellwether stocks such as DANGCEM (-10.00%) and FLOURMILL (-8.57%). Consequently, the YTD return decreased to 18.82% as market capitalisation declined by ₦550.62 billion to close at ₦27.36 trillion.

The sectoral performance weakened as four of the five indices under coverage declined. The Industrial index, the biggest loser, fell by 5.27% on DANGCEM (-10.00%). The Consumer Goods, Insurance and the Oil & Gas indices, followed suit, falling by 1.16%, 0.94% and 0.23% on FLOURMILL (-8.57%), NEM (-1.62%) and OANDO (-1.79%) respectively. The Banking index, the sole gainer, rose by 0.35% on ZENITHBANK (+2.80%).

Investors’ sentiment weakened as the market breadth declined to 0.23x from 0.42x. This was illustrated by the decline of 31 stocks, led by UBN (-10.00%) and DANGCEM (-10.00%) and the advance of 7 stocks, led by JAIZBANK (+5.32%) and REGALINS (+3.70%). Activity level was mixed as the total volume increased by 43.04% while the total value decreased by 16.15%, as investors exchanged about 345.00mn units of shares worth over ₦3.07bn.

Domestic Bourse Starts The Week In Red - 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.

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Fixed Income

There was bullish sentiment across the bond yield curve as three of the four bond yields under coverage compressed while the FGN-JUL-2030 bond paper yield inched higher by 2bps. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers compressed by 4bps, 2bps and 9bps respectively.

The Treasury bill yields for the 91 and 364-day papers closed flat at 3.48% and 6.10% while the yield on the 182-day paper compressed by 18bps to close at 5.01%.

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

 Market Snapshot

  • Domestic Bourse Starts the Week in Red, NGX ASI Down 197bps
  • Bullish Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Commodities Market Closes in Red
  • Negative Performance in African Stocks