Sell-Offs In Telecoms Stocks Dip Market Cap By ₦570.91 Billion

Sell-Offs In Telecoms Stocks Dip Market Cap By ₦570.91 Billion
Sell-Offs In Telecoms Stocks Dip Market Cap By ₦570.91 Billion

The Nigerian All-Share Index closed negative, declining by 2.31% to close at 44,318.15 points.

The performance was due to sell-offs in bellwether stocks such as AIRTELAFRI (-10.00%) and MTNN (-2.01%). Consequently, the YTD return decreased to 3.75% as market capitalisation decreased by ₦570.91 billion to close at ₦24.14 trillion.

The sectoral performance marginally strengthened as three of the five indices under coverage advanced. The Industrial index, the biggest gainer, rose by 0.94%, on BUACEMENT (+3.83%). The Banking and Insurance indices, followed suit, rising by 0.50% and 0.24% on FBNH (+1.57%) and AIICO (+5.56%) respectively. Conversely, the Oil & Gas and Consumer Goods indices, the losers, fell by 0.80% and 0.03% on TOTAL (-6.68%) and DANGSUGAR (-1.92%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.94x from 1.20x. This was illustrated by the decline of 17 stocks, led by AIRTELAFRI (-10.00%) and MRS (-9.76%) and the advance of 15 stocks, led by FIDELITYBK (+9.74%) and JAIZBANK (+7.06%). Activity level was mixed as the total volume decreased by 60.66% and while the value advanced by 1.36%, as investors exchanged about 165.35mn units of shares worth over ₦3.67bn.

Sell-Offs In Telecoms Stocks Dip Market Cap By ₦570.91 Billion - 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 quiet outing across the bond yield curve as three of the four bond yields under coverage closed flat. The yields on the FGN-APR-2023 bond paper advanced by 1bp while the FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond paper remained unchanged.

The yields for the 91 and 182-day paper closed flat at 6.05% and 9.85% respectively while the 364-day paper advanced by 36bps to close at 15.43%.

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

  • Negative Performance  Persists in the Local Bourse, NGX ASI Sheds 231bps
  • Quite Outing across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude ZReports @ $90.88/barrel
  • Negative Performance in African Stocks