Downward Trajectory Persists In The Local Bourse

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Newly Listed Geregu Top NGX Gainers Chat, Amidst Negative Market Performance
Newly Listed Geregu Top NGX Gainers Chat, Amidst Negative Market Performance

The Nigerian All Share Index extended its bearish sentiment at the end of yesterday’s trading session, falling further by 1.60% to close at 48,554.76 points.

The performance was due to selling pressures in bellwether stocks such as SEPLAT (-8.44%) and DANGCEM (-5.33%). Consequently, the YTD return decreased to 13.67% as market capitalisation declined by ₦426.07 billion to close at ₦26.19 trillion.

The sectoral performance significantly weakened as four of the five indices under coverage declined while the Insurance index, the only gainer, improved by 1.82% on NEM (+10.00%). The Oil & Gas index, the biggest loser, fell by 4.94% on SEPLAT (-8.44%). The Industrial, Consumer Goods and Banking indices followed suit, declining by 4.62%, 3.13% and 0.07% on DANGCEM (-5.33%), BUAFOODS (-9.92%) and GTCO (-0.25%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.45x from 0.47x. This was illustrated by the advance of 9 stocks, led by NEM (+10.00%) and FTNCOCOA (+10.00%) and the decline of 20 stocks, led by BUAFOODS (-9.92%) and NNFM (-9.88%). Activity level strengthened as the total volume and value improved by 66.34% and 144.64% respectively, as investors exchanged about 204.15mn units of shares worth over ₦3.18bn.

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 compressed while the yields on the FGN-JAN-2026 and FGN-JUL-2030 bonds closed flat. The yields on the FGN-APR-2023 and FGN-MAR-2024 bonds compressed by 5bps and 1bp respectively.

The Treasury bill yields for the 91, 182 and 364-day papers closed flat at 3.93%, 10.49% and 6.80% respectively.

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

MARKET SNAPSHOT

  • Downward Trajectory Persists in the Local Bourse, NGX ASI Loses 160bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Green
  • Negative Performance in African Stocks