Yesterday’s trading session saw the Nigerian All Share Index closed positive, appreciating by 1.47% to close at 50,075.47 points.
The performance was due to buying pressures in large-cap stocks such as DANGCEM (+9.96%) and GUINNESS (+1.20%). Consequently, the YTD return increased to 17.23% as market capitalisation improved by ₦390.91 billion to close at ₦27.01 trillion.
The sectoral performance totally strengthened as all the five indices under coverage improved. The Industrial index, the biggest gainer, rose by 4.83% on DANGCEM (+9.96%). The Insurance, Banking, Consumer goods and Oil & Gas indices followed suit, improving by 1.91%, 0.42%, 0.33% and 0.06% on NEM (+9.89%), ZENITHBANK (+0.94%), GUINNESS (+1.20%) and ETERNA (+2.80%) respectively.
Investors’ sentiment strengthened as the market breadth increased to 2.00x from 0.75x. This was illustrated by the advance of 20 stocks, led by DANGCEM (+9.96%) and NEM (+9.89%) and the decline of 10 stocks, led by WAPCO (-8.84%) and NAHCO (-8.62%). Activity level strengthened as the total volume and value improved by 98.58% and 30.14% respectively, as investors exchanged about 279.22mn units of shares worth over ₦2.08bn.
We expect positive sentiment to persist 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 flat, the yield on the FGN-APR-2023 increased by 168bps while the FGN-MAR-2024 bond yield compressed by 1bp. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 12.35% and 12.49% respectively.
The Treasury bill yields for the 91, 182 and 364-day papers closed flat at 6.08%, 7.77% and 6.81% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
- The Bulls Suppress the Bears in the Local Bourse, NGX ASI Rebounds by 147bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports @ $95.78/barrel
- Positive Performance in African Stocks
