Profit-Taking Drags Local Bourse Southwards

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

The Nigerian All-Share Index closed in negative territory, falling by 0.06% to close at 52,594.68 points.

The performance was due to profit-taking in large-cap stocks such as NGX (-1.03%) and ZENITHBANK (-0.20%). Consequently, the YTD return decreased to 2.62% as market capitalisation decreased by ₦17.29 billion to close at ₦28.65 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined while the Oil & Gas index closed flat. The Consumer Goods index, led the laggards, declining by 0.62% on DANGSUGAR (-2.58%). The Insurance, and Industrial indices, followed suit, falling by 0.25%, and 0.03%, on  AIICO (-1.52%),  and WAPCO (-0.60%) respectively. Conversely, the Consumer goods index, the only gainer, rose by 0.37% on  ETI (+3.43%).

Investors’ sentiment strengthened as the market breadth increased to 1.17x from 1.33x. This was illustrated by the appreciation of 14 stocks, led by PRESTIGE (+9.52%) and  INTEREGINS (+8.89%) and the decline of 11 stocks, led by LINKASSURE (-9.62%) and CHIPLC (-7.35%). Activity level was mixed as the total volume declined by 94.21% while value increased by 62.10%, as investors exchanged about 443.75mn units of shares worth over ₦1.68bn.

Profit-Taking Drags Local Bourse Southwards - Brand Spur

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

Read Also:  Domestic Bourse Extends Negative Trajectory, NGX ASI Sheds 145bps

Fixed Income

There was mixed sentiments across the bond yields curve as two of the bonds under our coverage closed flat while the yield on the FGN-APR-2023 advanced by 5bps. The yield on the FGN-MAR-2024  bond papers inched lower by 1bp. The yields on the FGN-JAN-2026 and FGN-JUL-2030 bond papers closed flat.

The yields for the 91, 182 and 364-day papers closed flat to close at 2.16%, 3.29% and 5.23% respectively.

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 6bps
  • Mixed Sentiments across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports @$86.82/barrel
  • Mixed Performance in African Stocks
  • Naira Depreciates  in the Parallel Market