Domestic Bourse Starts The Week In Red

By
Brand Spur
-
0
Bullish Sentiment Returns In Local Bourse
Local Bourse Closes Year At 19.98%

At the end of yesterday s trading session, the Nigerian All Share Index closed negative, declining by 0.32% to close at 51,390.25 points.

Yesterday’s performance was due to selloffs in large-cap stocks such as BUACEMENT (-3.62%) and ETERNA (-0.29%). Consequently, the YTD return decreased to 20.31% as market capitalisation declined by ₦90.14 billion to close at ₦27.71 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined while two improved. The Insurance index, the biggest loser, declined by 2.96% on MANSARD (-5.00%). The Oil & Gas and Industrial indices followed suit, falling by 0.04% and 0.01% on ETERNA (-0.29%) and BUACEMENT (-3.62%) respectively. Conversely, the Consumer Goods and Banking indices, the gainers, improved by 0.31% and 0.05% on INTBREW (+7.41%) and ZENITHBANK (+2.05%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.44x from 1.08x. This was illustrated by the decline of 25 stocks, led by MULTIVERSE (-10.00%) and REDSTAREX (-9.82%) and the advance of 11 stocks, led by CWG (+10.00%) and CAVERTON (+9,84%). Activity level strengthened as the total volume and value improved by 72.69% and 22.65%, as investors exchanged about 198.82mn units of shares worth over ₦2.18bn.

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 bearish sentiment across the bond yield curve as three of the four bond yields under coverage closed higher while the FGN-JUL-2030 bond yield closed flat. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers advanced by 5bps, 78bps and 5bps respectively.

Each of the Treasury bill yields for the 91, 182 and 365-day papers compressed 1bp to close at 9.49%, 8.61% and 6.38% respectively.
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 Sheds 32bps
  • Bearish Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Green
  • Negative Performance in African Stocks