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.
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.
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
