Downward Trajectory Persists In Local Bourse

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Negative Performance Resurfaces In Domestic Bourse
Negative Performance Resurfaces In Domestic Bourse

The Nigerian All-Share Index extended its negative performance, declining further by 0.47% to close at 49190.34 points.

The performance was due to selling pressures in bellwether stocks such as BUACEMENT (-6.18%) and GUINNESS (-5.57%). Consequently, the YTD return decreased to 15.16% as market capitalisation fell by ₦124.91 billion to close at ₦26.53 trillion.

The sectoral performance significantly weakened as four of the five indices under coverage declined while the Banking index, the gainer, improved by 0.42% on ZENITHBANK (+0.25%). The Industrial index, the biggest loser, declined by 2.30% on  BUACEMENT (-2.30%). The Consumer Goods, Insurance and Oil & Gas indices followed suit, falling by 0.36%, 0.32% and 0.20% on GUINNESS (-5.57%), CORNERST (-10.00%) and OANDO (-1.21%) respectively.

Investors’ sentiment weakened as the market breadth declined to 0.71x from 0.83x. This was illustrated by the advance of 10 stocks, led by TRANSEXPR (+8.70%) and NEM (+2.67%) and the decline of 14 stocks, led by CORNERST (-10.00%) and MULTIVERSE (-9.09%). Activity level strengthened as the total volume and value improved by 144.50% and 202.00% as investors exchanged about 126.84mn units of shares worth over ₦1.78bn.

Downward Trajectory Persists In Local Bourse - Brand Spur

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.

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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 2bps, 25bps and 25bps respectively.

The Treasury bill yields for the 91, 182 and 364-day papers compressed by 23bps, 14bps and 31bps to close at 11.25%, 5.37% and 6.45% 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 47bps
  • Bearish Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Positive Performance in the Commodities Market
  • Negative Performance in African Stocks