The Nigerian All-Share Index closed in the red, falling by 0.29% to close at 48,879.74 points.
The performance was due to selling pressures in bellwether stocks such as ZENITHBANK (-3.50%) and GTCO (-0.85%). Consequently, the YTD return decreased to 14.63% as market capitalisation declined by ₦78.53 billion to close at ₦26.37 trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined while the Industrial closed flat. The Banking index, the biggest loser, declined by 2.58% on ZENITHBANK (-3.50%). The Consumer Goods, Oil & Gas and Insurance indices followed suit, falling by 0.41%, 0.34% and 0.29% on VITAFOAM (-4.53%), OANDO (-2.08%) and CHIPLC (-7.02%) respectively.
Investors’ sentiment weakened as the market breadth decreased to 0.43x from 0.86x. This was illustrated by the advance of 21 stocks, led by INTBREW (-9.09%) and REDSTAREX (-7.83%) and the advance of 21 stocks, led by MULTIVERSE (+9.76%) and RTBRISCOE (+8.82%). Activity level weakened as the total volume and value declined by 51.37% and 36.09% as investors exchanged about 173.46mn units of shares worth over ₦2.39bn.
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.
There was bearish sentiment across the bond yield curve as three of the four bond yields under coverage advanced, while the FGN-JUL-2030 yields closed flat. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 inched higher by 2bps, 147bps, and 50bps respectively.
The Treasury bill yield for the 91-day closed flat at 6.07% while the 182-day paper yields advanced by 13bps to close at 7.25% and the 364-day paper yields compressed by 1bp to close at 9.02%.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Domestic Bourse Begins the Week in Negative Territory, NGX ASI Sheds 29bps
- Bearish Sentiment across the Bond Yield Curve
- Positive Performance in Global Stocks
- Commodities Market Closes in the Green
- Mixed Performance in African Stocks