Local Bourse Starts The Week In Red

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

At the end of yesterday’s trading session, the Nigerian All Share Index closed negative, falling by 0.07% to close at 49,629.43 points.

The performance was due to selling pressures in bellwether stocks such as PRESCO (-9.97%) and DANGSUGAR (-4.19%). Consequently, the YTD return decreased to 16.18% as market capitalisation declined by ₦18.68 billion to close at ₦26.77 trillion.

The sectoral performance was mixed as two of the five indices under coverage improved, two declined while the Insurance index closed flat. The Industrial and Banking indices, the gainers, rose by 0.17% and 0.15% on BUACEMENT (+0.47%) and ZENITHBANK (+2.12%). On the flip side, the Consumer Goods and Oil & Gas, the losers, declined by 0.59% and 0.36% on DANGSUGAR (-4.19%) and SEPLAT (-0.74%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.71x from 1.23x. This was illustrated by the advance of 12 stocks, led by NEIMETH (+9.29%) and UNITYBNK (+4.65%) and the decline of 17 stocks, led by PRESCO (-9.97%) and MULTIVERSE (-7.79%). Activity level weakened as the total volume and value declined by 71.90% and 59.03%, as investors exchanged about 210.84mn units of shares worth over ₦2.19bn.

Local 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.

Fixed Income
There was relatively quiet activity across the bond yield curve as three of the four bond yields under coverage closed flat while the FGN-MAR-2024 compressed by 1bp. The yields on the FGN-APR-2023, FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat at 9.30%, 12.76% and 12.68% respectively.

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The Treasury bill yields for the 91 and 364-day papers closed flat at 3.94% and 6.81% respectively while the yield on the 182-day paper compressed by 1bp to close at 10.51%.

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

MARKET SNAPSHOT

  • Local Bourse Starts the Week in Red, NGX ASI Loses 7bps
  • Quiet Activity Level across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Commodities Market Closes in Red
  • Mixed Performance in African Stocks