Sustained Bargain Hunting Lifts The Local Bourse

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

The Nigerian All-Share Index today closed positive, increasing by 2.90% to close at 46,232.37 points. The performance was due to buy interest in large-cap stocks such as DANGCEM (+9.98%) and ZENITHBANK (+2.71%). Consequently, the YTD return increased to 8.23% as market capitalization increased by ₦709.732 billion to close at ₦25.18 trillion.

The sectoral performance broadly strengthened as all of the five indices under coverage advanced. The Industrial index, the biggest gainer, rose by 9.25% on DANGCEM (+9.98%). The Insurance,  Banking, Oil & Gas and Consumer Goods indices, followed suit, increasing by 3.66%, 1.82%, 0.66% and 0.33% on AIICO (+5.66%), ZENITHBANK (+2,71%), OANDO (+5.26%) and DANGSUGAR (+2.52%) respectively.

Investors’ sentiment weakened but remained positive as the market breadth decreased to 2.33x from 3.86x. This was illustrated by the advance of 28 stocks, led by NSLTECH (+10.00%) and DANGCEM (+9.98%) and the decline of 12 stocks, led by SCOA (-9.30%) and ROYALEX (-8.97%). Activity level was mixed as the total volume increased by 48.47% and value decreased by 52.17%, as investors exchanged about 187.91mn units of shares worth over ₦1.84bn.

Sustained Bargain Hunting Lifts The Local Bourse - Brand Spur

 

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.

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Fixed Income

There was quiet outing across the bond yields curve as three of the bonds under our coverage closed flat while the yields on FGN-APR-2023 bond paper compressed by 1bp. The yields on FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat.

The yields for the 91 and 182-day papers closed flat at 8.47% and 8.36% respectively while the 364-day paper compressed by 1bp to close at 15.42%.

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

  • Sustained Bargain Hunting Lifts the Local Bourse, NGX ASI Gains 290bps
  • Quiet Outing across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports @$84.65/barrel
  • Positive Performance in African Stocks
  • Naira Gains in the parallel market