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.
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 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
