At the end of yesterday’s trading session, the Nigerian All Share Index extended its positive performance, rising by 0.11% to close at 49,889.80 points.
The performance was due to buying pressures in large-cap stocks such as BUACEMENT (+2.69%) and FLOURMILL (+2.75%). Consequently, the YTD return increased to 16.79% as market capitalisation rose by ₦28.74 billion to close at ₦26.91 trillion.
The sectoral performance marginally strengthened as three of the five indices under coverage improved. The Industrial index, the biggest gainer, improved by 0.99% on BUACEMENT (+2.69%). The Oil & Gas and Consumer Goods indices followed suit, rising by 0.32% and 0.09% on OANDO (+1.96%) and FLOURMILL (+2.75%) respectively. Conversely, the Insurance and Banking indices, the losers, fell by 0.54% and 0.43% on MBENEFIT (-9.38%) and ZENITHBANK (-2.97%) respectively.
Investors’ sentiment weakened but positive as the market breadth decreased to 1.17x from 1.67x. This was illustrated by the advance of 14 stocks, led by PHARMDEKO (+7.43%) and UPDC (+5.00%) and the decline of 12 stocks, led by MBENEFIT (-9.38%) and CWG (-9.09%). Activity level weakened as the total volume and value declined by 37.63% and 45.95%, as investors exchanged about 229.12mn units of shares worth over ₦1.75bn.
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 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 bond compressed by 1bp. The yields on the FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat at 11.64%, 12.95% and 12.82% respectively.
The Treasury bill yields for the 91, 182 and 364-day papers closed flat at 11.55%, 6.50% and 6.79% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
- Upward Trajectory Sustains in the Domestic Bourse, NGX ASI Up 11bps
- Quiet Activity Level across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Market Closes in Red
- Negative Performance in African Stocks
