The Nigerian All-Share Index closed in green, rising by 0.15% to close at 44,461.63 points.
The performance was due to bargain hunting in large cap stocks such as WAPCO (+2.73%) and ARDOVA (+2.19%). Consequently, the YTD return increased to 4.09% as market capitalisation increased by ₦35.35 billion to close at ₦24.22 trillion.
The sectoral performance significantly weakened as four of the five indices under coverage declined. The Insurance index, the biggest loser, fell by 1.52% on NEM (-9.50%). The Oil & Gas, Banking, and Consumer Goods indices, followed suit, falling by on OANDO (-3.12%), GTCO (-0.54%), and NB (-0.24%) respectively. Conversely, the Industrial index, the only gainer, rose by 0.22% on WAPCO (+2.73%).
Investors’ sentiment weakened as the market breadth decreased to 0.50x from 1.07x. This was illustrated by the decline of 16 stocks, led by UNILEVER (-10.00%) and NEM (-9.50%) and the advance of 8 stocks, led by REDSTAREX (+8.22%) and BETAGLAS (+5.90%). Activity level was mixed as the total volume declined by 24.01% while total value increased by 15.08%, as investors exchanged about 72.33mn units of shares worth over ₦2.17bn.
We expect positive sentiment to persist in the next trading session as the equities market still presents decent opportunities for investors chasing positive real returns on investments.
There was bearish sentiments across the bond yield curve as three of the four bond yields under coverage closed lower. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers compressed by 13bps, 1bp and 15bps respectively while the FGN-JUL-2030 bond paper remained unchanged.
The yields for the 91-day paper closed flat at 6.05% while 182 and 364-day paper compressed by 1bp and 261bps to close at 9.83% and 12.81% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Domestic Bourse Begins the Week in Green, NGX ASI Gains 15bps
- Bullish Sentiments across the Bond Yield Curve
- Positive Performance in Global Stocks
- Brent Crude Reports @$90.99/barrel
- Mixed Performance in African Stocks