Downward Trajectory Persists In The Domestic Bourse

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Domestic Bourse Rebounds As NGX ASI Gains 16bps
Domestic Bourse Rebounds As NGX ASI Gains 16bps

Trading activities at the Nigerian Bourse closed bearish with the All-Share Index declining by 0.40% to close at 51,586.50 points.

Yesterday’s performance was due to selloffs in bellwether stocks such as BUAFOODS (-6.36%) and ZENITHBANK (-2.04%). Consequently, the YTD return decreased to 20.76% as market capitalisation dipped by ₦110.49 billion to close at ₦27.81 trillion.

The sectoral performance weakened as three of the five indices under coverage declined, the Industrial index, the sole gainer, improved by 0.01% on WAPCO (+0.38%), while the Oil & Gas index closed flat. The Consumer goods index, the biggest loser, fell by 0.58% on BUAFOODS (-6.36%). The Banking and Insurance indices, followed suit, falling by 0.53% and 0.48% on ZENITHBANK (-2.04%) and CHIPLC (-8.00%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.44x from 0.94x. This was illustrated by the advance of 23 stocks, led by REDSTAREX (+10.00%) and JOHNHOLT (+9.76%) and the decline of 16 stocks, led by INTBREW (-9.52%) and CHIPLC (-8.00%). Activity level was mixed as the total volume advanced by 20.86% while the total value declined by 8.95%, as investors exchanged about 234.61mn units of shares worth over ₦2.57bn.

Downward Trajectory Persists In The Domestic 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.

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 Fixed Income

There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed lower, the FGN-MAR-2024 bond yield inched higher by 9bps while the yield on the FGN-JAN-2026 bond paper closed flat. The yields on the FGN-APR-2023 and FGN-JUL-2030 bond paper compressed by 9bps and 1bp respectively.

The Treasury bill yields for the 91 and 182-day papers inched up by 117bps and 215bps to close at 7.48% and 8.88% respectively, while the 364-day paper compressed by 53bps to close at 6.39%.

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

MARKET SNAPSHOT

  • Domestic Trajectory Persists in the Domestic Bourse, NGX ASI Loses 40bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Red
  • Negative Performance in African Stocks