Nigerian Bourse Begins August On A Bearish Note

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

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.

Nigerian Bourse Begins August On A Bearish Note - 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 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