Negative Performance Resurfaces In Domestic Bourse

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Newly Listed Geregu Top NGX Gainers Chat, Amidst Negative Market Performance
Newly Listed Geregu Top NGX Gainers Chat, Amidst Negative Market Performance

The Nigerian All-Share Index closed in the red, falling by 0.42% to close at 48,964.83 points. The performance was due to selling pressures in bellwether stocks such as NESTLE (-10.00%) and GTCO (-1.11%).

Consequently, the YTD return decreased to 14.63% as market capitalisation declined by ₦111.62 billion to close at ₦26.42 trillion.

The sectoral performance significantly weakened as four of the five indices under coverage declined while the Industrial closed flat. The Consumer Goods index, the biggest loser, declined by 3.22% on  NESTLE (-10.00%). The Insurance, Banking and Oil & Gas indices followed suit, falling by 0.58%, 0.15% and 0.03% on AIICO (-5.45%), GTCO (-1.11%) and OANDO (-0.21%) respectively.

Investors’ sentiment strengthened but negative as the market breadth increased to 0.86x from 0.35x. This was illustrated by the advance of 12 stocks, led by JAIZBANK (+9.21%) and IKEJAHOTEL (+8.77%) and the decline of 14 stocks, led by NESTLE (-10.00%) and AFRIPRUD(-8.26%). Activity level strengthened as the total volume and value improved by 117.37% and 88.03% as investors exchanged about 220.78mn units of shares worth over ₦2.25bn.

Negative Performance Resurfaces In Domestic 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 mixed sentiment across the bond yield curve as two of the four bond yields under coverage closed flat while the FGN-APR-2023 and FGN-JUL-2030 yields advanced by 149bps and 6bps. The yields on the FGN-MAR-2024 and FGN-JAN-2026 remained unchanged at 12.13% and 13.20% respectively.

The Treasury bill yield for the 91-day compressed by 538bps to close at 6.07% while the 182 and 364-day paper yields advanced by 161bps and 228bps to close at 7.12% and 9.03% respectively.

 We expect market activity to be influenced by the liquidity levels in the financial system.

MARKET SNAPSHOT

  • Negative Performance Resurfaces in the Local Bourse, NGX ASI Sheds 42bps
  • Mixed Sentiment across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in the Red