Trading at the Nigerian Exchange Limited (NGX) closed flat at 49,627.72 points at the end of yesterday’s session. Consequently, the YTD return closed at 16.18% as market capitalisation remain constant at ₦26.77 trillion.
The sectoral performance strengthened marginally as three of the five indices under coverage declined while the Oil & Gas index closed flat. The Insurance index, the biggest loser, fell by 0.57% on NEM (-1.35%). The Banking and Consumer Goods indices followed suit, decreasing by 0.09% and 0.02% on ZENITHBANK (-0.25%) and DANGSUGAR (-0.6%), respectively. Conversely, the industrial index, the only gainer, rose by 0.14% on WAPCO (+1.65%).
Investors’ sentiment weakened as the market breadth decreased to 0.81x from 1.00x. This was illustrated by the decline of 16 stocks, led by REDSTAREX (-10.00%) and CAVERTON (-4.55%), and the advance of 13 stocks, led by MULTIVERSE (+9.69%) and NPFMCRFBK (+7.84%). Activity level strengthened as the total volume and value increased by 85.06% and 27.17%, respectively, as investors exchanged about 160.24mn units of shares worth over ₦1.49bn.
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
The bond yield curve recorded mixed sentiments as two of the four bond yields under coverage compressed while the FGN-MAR-2024 inched higher by 2bps and the FGN-JUL-2030 closed flat. The FGN-APR-2023 and FGN-JAN-2026 compressed by 2bps and 12bps, respectively.
The Treasury bill yields for the 91-day paper closed flat at 11.51% while the 182 and 364-day compressed by 1bp each to close at 10.56% and 6.77%, respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Flattish Performance in the Local Bourse, NGX ASI Remains Unchanged
- Mixed Sentiment across the Bond Yield Curve
- Negative Performance in Global Stocks
- Commodities Close in Red
- Negative Performance in African Stocks
