At the end of yesterday’s trading session, the Nigerian All Share Index closed positive, increasing by 0.28% to close at 50,722.33 points.
The performance was due to buying pressures in large-cap stocks such as BUAFOODS (+7.28%) and BUACEMENT (+0.94%). Consequently, the YTD return increased to 18.74% as market capitalisation increased by ₦81 billion to close at ₦27.36 trillion.
The sectoral performance significantly strengthened as four of the five indices under coverage improved while the insurance index declined by 0.40% on CHIPLC (-7.69%). The Consumer goods index, the biggest gainer, improved by 1.52% on BUAFOODS (+7.28%). The Oil & Gas, Industrial and Banking indices, followed suit, increasing by 0.37% and 0.35%, and 0.06% on ARDOVA (+4.00%), BUACEMENT (+0.94%) and GTCO (+0.94%) respectively.
Investors’ sentiment strengthened as the market breadth increased to 2.40x from 1.50x. This was illustrated by the advance of 24 stocks, led by ETERNA (+10.00%) and MULTIVERS (+9.94%) and the decline of 10 stocks, led by UNILEVER (-10.00%) and SKYAVN (-8.76%). Activity level was strengthened as the total volume and value improved by 14.08% and 18.65%, as investors exchanged about 148.81mn units of shares worth over ₦1.93bn.
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 yields on the FGN-MAR-2024 closed inched lower by 1bps.
The yields on the FGN-APR-2023, FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 7.67%, 11.75% and 12.19% respectively.
The Treasury bill yields for the 91, 182 and 364-day papers closed flat at 6.08%, 7.78% and 6.82% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
Quiet Activity Level across the Bond Yield Curve
Negative Performance in Global Stocks
Brent Crude Reports at $95.22/barrel
Positive Performance in African Stocks
