Buy-Interest In BUACEMENT And GTCO Lifts Domestic Bourse

Nigerian Stocks Record Flattish Performance As NGX ASI Remains Unchanged
Nigerian Stocks Record Flattish Performance As NGX ASI Remains Unchanged

The Nigerian All-Share Index closed in green, rising by 0.55% to close at 51,729.87 points. The performance was due to buy-interest in large-cap stocks such as  BUACEMENT (+3.59%) and GTCO (+1.48%). Consequently, the YTD return increased to 0.93% as market capitalisation increased by ₦154.29 billion to close at ₦28.18 trillion.

The sectoral performance marginally strengthened as three of the five indices under coverage advanced while the Oil & Gas indices closed flat. The Industrial index, led the  gainers, rising by 1.50% on BUACEMENT (+3.59%). Conversely, the Banking and Consumer Goods indices, followed suit, rising by 1.05% and 0.15% on GTCO (+1.48%) and HONYFLOUR (+1.33%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 2.17x from 1.13x. This was illustrated by the appreciation of 26 stocks, led by THOMASWY (+9.48%) and CHAMPION (+9.45%) and the depreciation of 12 stocks, led by CHELLARAM (-9.89%) and ROYALEX (-7.41%). Activity level weakened as the total volume and value decreased by 18.39% and 1.59%, as investors exchanged about 281.94mn units of shares worth over ₦8.16bn.

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 mixed sentiments across the bond yield curve as two of the bonds under our coverage closed flat while the yields on the FGN-JUL-2026 inched higher by 15bps. The yields on the FGN-APR-2023 and FGN-JAN-2030  bond papers closed flat while the yields on the FGN-MAR-2024 compressed by 1bp.

The yields for the 91, 182 and 364-day papers remain unchanged to close at 2.39%, 3.32% and 5.34% respectively.

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

  • Buy-Interest Lifts the Domestic Bourse, NGX ASI Gains 55bps
  • Mixed Sentiments across the Bond Yield Curve
  • Global Stocks Rally Ahead of US Inflation Data
  • Brent Crude Reports @$82.70/barrel
  • Positive Performance in African Stocks
  • Naira Closes Flat in the Parallel Market