At the end of yesterday’s trading session, the Nigerian All Share Index closed in the red, falling by 0.05% to close at 49,421.91 points.
The performance was due to selling pressures in bellwether stocks such as CADBURY (-5.45%) and GTCO (-1.53%). Consequently, the YTD return decreased to 15.70% as market capitalisation fell by ₦12.62 billion to close at ₦26.66 trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined while the Banking index, the gainer, improved by 0.49% on ZENITHBANK (+0.76%). The Insurance index, the biggest loser, declined by 1.21% on NEM (-6.08%). The Oil & Gas, Industrial and Consumer Goods indices followed suit, falling by 0.10%, 0.03% and 0.02% on OANDO (-0.60%), WAPCO (-0.41%) and CADBURY (-5.45%) respectively.
Investors’ sentiment strengthened but negative as the market breadth improved to 0.83x from 0.79x. This was illustrated by the advance of 10 stocks, led by UNITYBNK (+10.00%) and MULTIVERSE (+9.82%) and the decline of 12 stocks, led by ACADEMY (-9.78%) and NEM (-6.08%). Activity level weakened as the total volume and value declined by 64.85% and 75.35% as investors exchanged about 51.88mn units of shares worth over ₦0.59bn.
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 bearish sentiment across the bond yield curve as three of the four bond yields under coverage closed higher while the FGN-JUL-2030 closed flat at 12.81%. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 advanced by 11bps, 153bps and 18bps respectively.
The Treasury bill yields for the 91 and 364-day papers closed flat at 11.48%, 5.52% and 6.76% respectively while the 182-day paper compressed by 1bp to close at 5.51%.
We expect market activity to be influenced by the liquidity levels in the financial system.
MARKET SNAPSHOT
- Negative Performance Returns in the Local Bourse, NGX ASI Sheds 5bps
- Bearish Sentiment across the Bond Yield Curve
- Positive Performance in Global Stocks
- Brent Crude Reports @$89.98/barrel
- Negative Performance in African Stocks
