Local Bourse Closes Year At 19.98%

Bullish Sentiment Returns In Local Bourse
Local Bourse Closes Year At 19.98%

The Nigerian All-Share Index closed positive, rising by 1.89% to close at 51,251.06 points. The performance was due to buy-interest in large-cap stocks such as AIRTELAFRI (+9.88%) and GEREGU (+6.66%). Consequently, the YTD return increased to 19.98% as market capitalisation increased by ₦518.01 billion to close at ₦27.92 trillion.

The sectoral performance was mixed as two of the five indices under coverage advanced while the industrial index closed flat. The Insurance and Consumer Goods indices, the gainers, rose by 0.40% on MANSARD (+0.50%) and UNILEVER (+0.87%) respectively. The Banking and Oil & Gas indices, followed suit, falling by 2.86% and 0.41% on  ZENITHBANK (-3.61%), and OANDO (-1.75%) respectively.

Investors’ sentiment weakened but remained positive as the market breadth decreased to 1.24x from 4.00x. This was illustrated by the decline of 17 stocks, led by ROYALEX (-9.40%) and FIDSON (-8.16%) and the appreciation of 21 stocks, led by CAVERTON (+10.00%) and PRESCO (+10.00%). Activity level was mixed as the total volume increased by 81.59% and while total value decreased by 5.06%, as investors exchanged about 890.68mn units of shares worth over ₦7.36bn.

Local Bourse Closes Year At 19.98% - Brand Spur

We expect buy-interest to persist as the equities market presents decent opportunities amid declining yields in the fixed-income market.

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Fixed Income

There was mixed sentiments across the bond yield curve as two of the bonds under our coverage closed flat while the FGN-APR-2023 compressed by 1bp. The FGN-MAR-2024 bond paper compressed by 1bp. The FGN-JAN-2026 and FGN-JUL-2030 bond papers remain unchanged.

The yields for the 91 and 364-day papers compressed by 1bp each to close at 4.44% and 8.55% respectively, while the yields for the 182-day paper remain unchanged at 5.57%.

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

  • Local Bourse Closes the Year at 19.98% YTD Return, NGX ASI Gains 1.89bps
  • Mixed Sentiments across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Commodities Market Closes in Green
  • Mixed Performance in African Stocks
  • Naira depreciates at the Parallel Market