At the end of yesterday’s trading session, the Nigerian All-Share Index closed negative, decreasing by 0.08% to close at 44,011.22 points.
The performance was due to profit-taking in bellwether stocks such as GTCO (-1.55%) and ZENITHBANK (-2.29%). Hence, the YTD return decreased to 3.03% as market capitalisation decreased by ₦19.46 billion to close at ₦23.97 trillion.
The sectoral performance broadly weakened as four of the five indices under coverage declined. The Banking index, the biggest loser, fell by 0.98% on GTCO (-1.55%). The Oil & Gas, Consumer Goods and Industrial indices, followed suit, decreasing by 0.79%, 0.49%, and 0.09% on OANDO (-5.76%), GUINNESS (-9.97%) and WAPCO (-1.41%) respectively. Conversely, the Insurance index, the only gainer, increased by 0.30% on AFRIPRUD (+3.92%).
Investors’ sentiment weakened as the market breadth decreased to 0.65x from 0.88x. This was illustrated by the decline of 20 stocks, led by GUINNESS (-10.00%) and SCOA (-9.98%) and the advance of 13 stocks, led by UNILEVER (+10.00%) and STANBIC (+9.09%). Activity level weakened as the total volume and value declined by 38.72% and 70.36%, as investors exchanged about 97.70mn units of shares worth over ₦857.88mn.
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 mixed sentiments across the bond yields curve as two of the bonds under our coverage advanced while the FGN-MAR-2024 closed flat. The yields on FGN-APR-2023, and FGN-JAN-2026 bond papers inched higher by 3bps, and 5bps respectively. The FGN-JUL-2030 bond papers compressed by 3bps.
The yields for the 182 and 364-day papers compressed by 1bp each to close at 8.37% and 15.46% respectively while the 91-day paper remained unchanged at 8.48%.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Profit Taking Drags the Local Bourse Southwards, NGX ASI Sheds 8bps
- Mixed Sentiments across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports @ $90.67/barrel
- Negative Performance in African Stocks
