Profit Taking Drags Local Bourse Southwards

Domestic Bourse Closes The Week In Green
Domestic Bourse Closes The Week In Green

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.

Profit Taking Drags Local Bourse Southwards - 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 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