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.
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 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
