The Nigerian All Share Index started August on a negative note, declining by 0.83% to close at 49,950.32 points.
Today’s performance was due to selling pressures in bellwether stocks such as BUACEMENT (-9.96%) and FBNH (-3.64%). Consequently, the YTD return decreased to 16.93% as market capitalisation declined by ₦226.45 billion to close at ₦26.94 trillion.
The sectoral performance was mixed as two of the five indices under coverage improved, two declined while the Oil & Gas index closed flat. The Banking and Insurance indices, the gainers, improved by 0.19% and 0.12% on ZENITHBANK (+1.45%) and CHIPLC (+7.81%) respectively. Conversely, the Industrial and Consumer goods indices, the losers, declined by 4.18% and 0.13% on BUACEMENT (-9.96%) and INTBREW (-6.54%) respectively.
Investors’ sentiment weakened as the market breadth decreased to 1.00x from 1.92x. This was illustrated by the advance of 17 stocks, led by CAVERTON (+10.00%) and COURTVILLE (+10.00%) and the decline of 17 stocks, led by BUACEMENT (-9.96%) and MCNICHOLS (-9.89%). Activity level weakened as the total volume and value declined by 30.90% and 19.21%, as investors exchanged about 176.05mn units of shares worth over ₦2.27bn.
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 mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed flat, the yield on the FGN-MAR-2024 compressed by 1bp while the yield on the FGN-JUL-2030 increased by 16bps. The yields on the FGN-APR-2023 and FGN-JAN-2026 bond papers closed flat at 7.64% and 11.65% respectively.
The Treasury bill yield for the 91-day paper closed flat at 6.09%, the 182-day paper yield compressed by 1bp to close at 7.78% while the yield on the 364-day paper increased by 47bps to 6.83%.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
- Local Bourse Starts the Week in Red, NGX ASI Sheds 83bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports at $99.79/barrel.
- Negative Performance in African Stocks
