The Nigerian All Share Index closed positive at the end of yesterday’s trading session, improving by 0.66% to close at 51,091.75 points.
Yesterday”s performance was due to buying pressures in bellwether stocks such as DANGCEM (+8.30%) and SEPLAT (+0.04%). Consequently, the YTD return increased to 19.61% as market capitalisation improved by ₦180.61 billion to close at ₦27.54 trillion.
The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Industrial index, the biggest gainer, improved by 3.86% on DANGCEM (+8.30%). The Oil & Gas and Banking indices, followed suit, rising by 0.68% and 0.38% on SEPLAT (+0.04%), and UBN (+4.63%) respectively. The Consumer Goods and Insurance indices, the losers, declined by 0.11% and 0.06% on NASCON (-8.56%) and AIICO (-1.54%).
Investors’ sentiment strengthened but negative as the market breadth improved to 0.64x from 0.23x. This was illustrated by the decline of 22 stocks, led by LEARNAFRCA (-10.00%) and BUAFOODS (-10.00%) and the advance of 14 stocks, led by LIVESTOCK (+10.00%) and MRS (+9.80%). Activity level weakened as the total volume and value decreased by 51.60% and 10.86%, as investors exchanged about 166.97mn units of shares worth over ₦2.74bn.
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 relatively quiet activity across the bond yield curve as three of the four bond yields under coverage closed flat while the FGN-APR-2023 bond paper yield inched higher by 8bps. The yields on the FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 8.17%, 10.21% and 11.16% respectively.
The Treasury bill yield for the 91-day paper closed flat at 3.48%, the 182-day paper yield inched higher by 32bps to close at 5.33% while the 364-day paper yield compressed by 1bp to close at 6.09%.
We expect market activity to be influenced by the liquidity levels in the financial system
MARKET SNAPSHOT
- Positive Performance Returns in the Local Bourse, NGX ASI Up 66bps
- Quiet Activity across the Bond Yield Curve
- Positive Performance in Global Stocks
- Brent Crude Reports at $114.49
- Positive Performance in African Stocks
