The Nigerian All Share Index extended its negative territory, falling by 0.35% to close at 49,370.62 points.
Yesterday’s performance was due to selloffs in high-value stocks such as MTNN (-2.00%) and WAPCO (-4.01%). Consequently, the YTD return decreased to 15.58% as market capitalisation declined by ₦94.80 billion to close at ₦26.63 trillion.
The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Banking index gained 0.23% on UBA (+1.43%). The Insurance and Consumer Goods indices followed suit, rising by 0.13% and 0.06% on AIICO (+3.64%) and DANGSUGAR (+1.88%). Conversely, the Industrial and Oil & Gas indices, the losers, declined by 0.32% and 0.15% on WAPCO (-4.01%), and ARDOVA (-2.78%) respectively.
Investors’ sentiment weakened as the market breadth decreased to 0.93x from 2.00x. This was illustrated by the advance of 14 stocks, led by JAIZBANK (+5.95%) and AIICO (+3.64%) and the decline of 15 stocks, led by UPL (-9.95%) and IMG (-9.70%). Activity level weakened as the total volume and value declined by 10.04% and 38.64%, as investors exchanged about 132.23mn units of shares worth over ₦3.05bn.
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 flat, the FGN-MAR-2024 bond yield compressed by 1bp while the yield on the FGN-JAN-2026 bond advanced by 30bps. The yields on the FGN-APR-2023 and FGN-JUL-2030 bonds remained constant at 9.30%, and 12.80% respectively.
The Treasury bill yields for the 182 and 364-day papers closed flat at 10.50% and 6.80% respectively while the 91-day paper compressed by 1bp to close at 3.93%.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
- Local Bourse Closes the Week Bearish, NGX ASI Loses 35bps
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports @ $97.67/barrel
- Negative Performance in African Stocks
