Downward Trajectory Persists In The Local Bourse

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

At the end of yesterday’s trading session, the Nigerian All Share Index closed in red, falling by 0.10% to close at 51,339.01 points.

Yesterday’s performance was due to selloffs in bellwether stocks such as BUACEMENT (-2.31%) and ZENITHBANK (-1.56%). Consequently, the YTD return decreased to 20.19% as market capitalisation declined by ₦28.05 billion to close at ₦27.69 trillion.

The sectoral performance weakened as three of the five indices under coverage declined, the Insurance index, gained 0.58% on REGALINS (+8.00%) while the Oil & Gas index, closed flat. The Industrial index, the biggest loser, declined by 1.53% on WAPCO (-0.38%). The Consumer Goods and Banking indices, followed suit, declining by 93bps and 0.67% on BUACEMENT (-2.31%) and ZENITHBANK (-1.56%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.67x from 0.44x. This was illustrated by the advance of 15 stocks, led by ACADEMY (+8.70%) and REGALINS (+8.00%) and the decline of 9 stocks, led by CHAMPION (-8.74%) and IKEJAHOTEL (-7.69%). Activity level weakened as the total volume and value declined by 41.95% and 44.72%, as investors exchanged about 115.41mn units of shares worth over ₦1.21bn.

Downward Trajectory Persists In The Local 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 bearish sentiment across the bond yield curve as all the four bond yields under coverage closed higher. The yields on the FGN-APR-2023, FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers advanced by 32bps, 65bps, 9bps and 17bps respectively.

The Treasury bill yields for the 182 and 364-day papers closed flat at 8.61% and 6.38% respectively while the 91-day compressed by 28bps to close at 9.21%.

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

MARKET SNAPSHOT

  • Downward Trajectory Persists in the Local Bourse, NGX ASI Loses 10bps
  • Bearish Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Red
  • Negative Performance in African Stocks