At the end of Yesterday’s trading session, the Nigerian All Share Index extended its negative trajectory, falling by 1.04% to close at 49,667.14 points.
Yesterday’s performance was due to selloffs in large-cap stocks such as NESTLE (-9.84%) and STANBIC (-9.98%). Consequently, the YTD return decreased to 16.27% as market capitalization declined by ₦281.18 billion to close at ₦26.78 trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined while the Oil & Gas index gained 0.59% on OANDO (+3.99%). The Consumer goods index, the biggest loser, fell by 3.77% on NESTLE (-9.84%). The Banking, Insurance and Industrial indices, followed suit, falling by 3.54%, 3.19%, and 0.46% on STANBIC (-9.98%), MANSARD (-9.47%) and WAPCO (-6.61%) respectively.
Investors’ sentiment marginally strengthened but negative as the market breadth increased to 0.36x from 0.09x. This was illustrated by the decline of 28 stocks, led by LASACO (-10.00%) and STANBIC (-9.98%) and the advance of 10 stocks, led by UPDCREIT (+9.23%) and RTBRISCOE (+8.57%). Activity level weakened as the total volume and value declined by 75.14% and 4.49%, as investors exchanged about 206.22mn units of shares worth over ₦3.92bn.
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 outing across the bond yield curve as three of the four bond yields under coverage closed flat while the yield on the FGN-APR-2023 inched higher by 1bp. The yields on the FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat respectively.
The Treasury bill yields for the 91 and 182-day papers compressed by 309bps and 80bps to close at 6.09% and 7.79% respectively while the 364-day paper closed flat at 6.36%.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
- Bearish Sentiment Persists in the Local Bourse, NGX ASI Sheds 104bps
- Quiet Outing across the Bond Yield Curve
- Positive Performance in Global Stocks
- Commodities Market Closes in Green
- Positive Performance in African Stocks
