Domestic Bourse Starts The Week In Red

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Negative Performance Resurfaces In Domestic Bourse
Negative Performance Resurfaces In Domestic Bourse

The Nigerian All Share Index closed negative yesterday, with a 0.46% decline to close at 50,489.73 points. The performance was due to selling pressures in large-cap stocks such as ZENITHBANK (-2.97%) and MTNN (-2.28%).

Consequently, the YTD return decreased to 18.20% as market capitalisation declined by ₦125.46 billion to close at ₦27.23 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 Insurance and Consumer goods indices improved by 1.36% and 0.17% on LASACO (+5.38%) and FLOURMILL (+2.81%) respectively. Conversely, the Banking and Industrial indices, the losers, declined by 1.10% and 0.01% on ZENITHBANK (-2.97%) and CUTIX (-6.25%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.67x from 2.40x. This was illustrated by the decline of 15 stocks, led by RTBRISCOE (-10.00%) and IMG (-9.84%) and the advance of 10 stocks, led by JAPAULGOLD (+8.82%) and HONYFLOUR (+5.73%). Activity level strengthened as the total volume and value improved by 39.24% and 10.07%, as investors exchanged about 207.20mn units of shares worth over ₦2.12bn.

Domestic Bourse Starts The Week In Red - 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 higher while the yields on the FGN-APR-2023 and FGN-MAR-2024 compressed by 7bps and 1bp respectively. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bonds increased by 60bps and 30bps respectively.

The Treasury bill yields for the 91 and 364-day papers closed flat at 6.08% and 6.82% respectively while the 182-day paper compressed by 1bp to close at 7.77%

 We expect market activity to be influenced by the liquidity levels in the financial system.

MARKET SNAPSHOT

  • Domestic Bourse Starts the Week in Red, NGX ASI Sheds 46bps
  • Mixed Sentiment across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Commodities Market Closes in Green
  • Mixed Performance in African Stocks