At the end of yesterday’s trading session, the Nigerian All Share Index closed in the negative territory, extending its decline by 2.26% to close at 49,350.71 points.
The performance was due to selling pressures in bellwether stocks such as DANGCEM (-9.06%) and MTNN (-4.29%). Consequently, the YTD return decreased to 15.53% as market capitalisation declined by ₦614.35 billion to close at ₦26.62 trillion.
The sectoral performance marginally weakened as three of the five indices under coverage declined. The Industrial index, the biggest loser, declined by 4.83% on DANGCEM (-9.06%). The Consumer goods and Oil & Gas indices followed suit, falling by 0.29% and 0.27% on INTBREW (-4.76%) and OANDO (-1.80%) respectively. Conversely, the Banking and Insurance indices, the gainers, improved by 0.60% and 0.24% on ETI (+7.07%) and NEM (+10.00%) respectively.
Investors’ sentiment strengthened but negative as the market breadth increased to 0.75x from 0.67x. This was illustrated by the decline of 16 stocks, led by CORNERST (-9.33%) and DANGCEM (-9.06%) and the advance of 12 stocks, led by PRESTIGE (+10.00%) and NEM (+10.00%). Activity level weakened as the total volume and value declined by 32.14% and 24.50% respectively, as investors exchanged about 140.61mn units of shares worth over ₦1.60bn.
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.
There was relatively quiet activity across the bond yield curve as three of the four bond yields under coverage closed flat while the yield on the FGN-APR-2023 increased by 2bps. The yields on the FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 11.00%, 12.35% and 12.49% respectively.
The Treasury bill yields for the 91 and 182-day papers closed flat at 6.08% and 7.77% respectively while the 364-day paper compressed by 1bp to close at 6.81%
We expect market activity to be influenced by the liquidity levels in the financial system.
- The Bears Outweigh the Bulls in the Local Bourse, NGX ASI Loses 226bps
- Quiet Activity Level across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports @ $96.21/barrel
- Mixed Performance in African Stocks