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

Sell pressure in large-cap stocks such as BUACEMENT(-4.51%) and FBNH (-0.46%) yesterday led to a marginal decline of the Nigerian All Share Index by 0.03% to close at 50,582.30 points.

Consequently, the YTD return decreased to 18.41% as market capitalization declined by ₦6.83 billion to close at ₦27.28 trillion.

The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Banking index, the biggest gainer, improved by 2.07% on ZENITHBANK (+2.80%). The Consumer goods and Insurance indices, followed suit, increasing by 0.06% and 0.04% on PZ (+10.00%) and CUSTODIAN (+4.62%) respectively. Conversely, the Industrial and Oil & Gas Indices, the losers, declined by 1.57% and 0.28% on BUACEMENT (-4.51%) and ARDOVA (-0.20%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.50x from 1.47x. This was illustrated by the advance of 24 stocks, led by PZ (+10.00%) and HONYFLOUR (+9.64%) and the decline of 16 stocks, led by MULTIVERSE (-10.00%) and LASACO (-7.07%). Activity level was mixed as the total volume improved by 7.66% while the total value declined by 61.08%, as investors exchanged about 130.45mn units of shares worth over ₦1.62bn.

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.

 Fixed Income

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There was mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed flat while the yields on the FGN-APR-2023 and FGN-MAR-2024 closed inched higher by 2bps and 21bps respectively. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 11.75% and 12.19% respectively.

The Treasury bill yields for the 182 and 364-day papers closed flat at 7.78% and 6.82% respectively while the 91-day paper compressed by 1bp to 6.08%.

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 3bps
  • Mixed Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports at $93.8/barrel
  • Positive Performance in African Stocks