The Nigerian All-Share Index closed positive, rising by 0.67% to close at 51,595.66 points. The performance was due to buy-interest in large-cap stocks such as BUAFOODS (+10.00%) and GTCO (+1.09%). Consequently, the YTD return increased to 0.67% as market capitalisation increased by ₦187.70 billion to close at ₦28.10 trillion.
The sectoral performance marginally strengthened as three of the five indices under coverage advanced while the industrial index closed flat. The Consumer Goods index, the biggest gainer, rose by 3.60% on BUAFOODS (+10.00%). The Banking and Insurance indices, followed suit, rising by 2.60% and 2.55% on GTCO (+1.09%), and AIICO (+8.47%) respectively. Conversely, the Oil & Gas index, the only loser, fell by 0.02 on OANDO (-1.02%).
Investors’ sentiment strengthened as the market breadth increased to 2.18x from 1.24x. This was illustrated by the appreciation of 24 stocks, led by BUAFOODS (+10.00%) and JOHNHOLT (+9.59%) and the decline of 11 stocks, led by CHELLARAM (-9.82%) and CWG (-8.91%). Activity level weakened as the total volume and value decreased by 63.88% and 40.86, as investors exchanged about 321.67mn units of shares worth over ₦4.35bn.
We expect buy-interest to persist as the equities market presents decent opportunities amid declining yields in the fixed-income market.
Fixed Income
There was bearish sentiments across the bond yield curve as three of the bonds under our coverage compressed while the FGN-JAN-2026 closed flat. The FGN-APR-2023, FGN-MAR-2024, FGN-JUL-2030 bond paper compressed by 90bps, 2bps and 37bps respectively.
The yields for the 91-day papers compressed by 127bp to close at 3.17%, while the yields for the 182 and 364-day paper remain unchanged at 8.55% and 5.57% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Local Bourse Begins the Year on a Positive Note, NGX ASI Gains 67bps
- Bullish Sentiments across the Bond Yield Curve
- Positive Performance in Global Stocks
- Brent Crude Reports @$83.11/barrel
- Positive Performance in African Stocks
- Naira appreciates in the Parallel Market
