At the end of yesterday’s trading session, the Nigerian All Share Index closed in negative territory, dipping further by 0.06% to close at 51,556.54 points.
Yesterday’s performance was due to selloffs in bellwether stocks such as GTCO (-0.73%) and OANDO (-0.91%). Consequently, the YTD return decreased to 20.69% as market capitalisation fell by ₦16.15 billion to close at ₦27.79 trillion.
The sectoral performance weakened as four of the five indices under coverage declined while the Industrial index closed flat. The Insurance index, the biggest loser, fell by 1.36% on NEM (-10.00%). The Banking, Oil & Gas and Consumer goods indices, followed suit, falling by 0.60%, 0.16% and 0.03% on GTCO (-0.73%), OANDO (-0.91%) and INTBREW (-5.26%) respectively.
Investors’ sentiment weakened but positive as the market breadth decreased to 1.06x from 1.44x. This was illustrated by the advance of 17 stocks, led by ACADEMY (+9.79%) and CHIPLC (+8.70%) and the decline of 16 stocks, led by CHAMPION (-10.00%) and NEM (-10.00%). Activity level was weakened as the total volume and value declined by 42.35% and 44.02%, as investors exchanged about 135.26mn units of shares worth over ₦1.44bn.
We expect negative sentiment to persist 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 closed flat, the FGN-MAR-2024 bond yield compressed by 1bp while the yield on the FGN-APR-2023 bond paper inched up by 58bps. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bond paper closed flat.
The Treasury bill yields for the 91 and 182-day papers inched up by 203bps and 33bps to close at 9.51% and 9.21% respectively while the 364-day paper closed flat at 6.39%.
We expect market activity to be influenced by the liquidity levels in the financial system
Market Snapshot
- Bearish Sentiment Dominates the Local Bourse, NGX ASI Sheds 6bps
- Mixed Sentiment across the Bond Yield Curve
- Mixed Performance in Global Stocks
- Commodities Market Closes in Red
- Positive Performance in African Stocks
