Profit Taking Drags Local Bourse Southwards

Profit Taking Drags Local Bourse Southwards
Profit Taking Drags Local Bourse Southwards

At the end of yesterday’s trading session, the Nigerian All-Share Index closed negative, decreasing by 0.25% to close at 47,436.45 points.

The performance was due to sell-offs in large-cap stocks such as BUACEMENT (-2.78%) and GTCO (-0.25%). Consequently, the YTD return decreased to 11.05% as market capitalisation decreased by ₦64.21 billion to close at ₦25.84 trillion.

The sectoral performance marginally stregnthened as three of the five indices under coverage advanced. The Insurance index, the biggest gainer, rose by 1.49% on NEM (+9.22%). The Oil & Gas and Consumer Goods Indices, followed suit, increasing by 0.09%, and 0.02% on ETERNA (+3.86%) and NASCON(+7.00%) respectively. Conversely, the Industrial and Banking indices, the gainers, decreased by 0.90% and 0.22 on BUACEMENT (-2.78%) and GTCO (-0.25%).

Investors’ sentiment weakened as the market breadth decreased to 0.88x from 2.25x. This was illustrated by the depreciation of 17 stocks, led by BETAGLAS (-9.90%) and MCNICHOLS (-9.68%) and the appreciation of 15 stocks, led by PRESTIGE (+9.30%) and NEM (+9.22%). Activity level was mixed as the total volume increased by 182.16% while value decreased by 72.36%, as investors exchanged about 279.28mn units of shares worth over ₦1.52bn.

Profit Taking Drags Local Bourse Southwards - 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 mixed sentiments across the bond yields curve as two of the bonds under our coverage climed higher while the yields on the  FGN-MAR-2024 closed flat. The yields on FGN-APR-2023 and FGN-JUL-2030 bond papers advanced by 8bps and 3bps while the yields on the FGN-JAN-2026 compressed by 1bp.

The yields for the 182 and 364-day papers compressed by 1bp and 2bps to close at 9.96% and 15.39% respectively while the  yields on the 91-day paper closed flat at 10.49%%.

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 25bps
  • Mixed Sentiments across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Red
  • Negative Performance in African Stocks
  • Naira Remains Unchanged at the parallel market