Bullish Sentiment Returns In Local Bourse

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

The Nigerian All-Share Index closed positive, rising by 0.29% to close at 52,752.96 points.


The performance was due to bargain-hunting in large-cap stocks such as GEREGU (+10.00%) and ZENITHBANK (+0.82%). Consequently, the YTD return increased to 2.93% as market capitalisation increased by ₦83.51 billion to close at ₦28.73 trillion.

The sectoral performance broadly strengthened as four of the five indices under coverage advanced. The Oil & Gas index, led the gainers, rising by 1.58% on TOTAL (+5.51%). The Banking, Insurance and Consumer Goods Indices, followed suit, rose by 1.23%, 1.01% and 0.05% on  ZENITHBANK (+0.82%), AIICO (+1.56%) and NB (+0.24%) respectively. The Industrial Index, the only loser, fell by 0.01% on WAPCO(-0.20%).

Investors’ sentiment strengthened as the market breadth increased to 3.57x from 1.31x. This was illustrated by the appreciation of 25 stocks, led by GEREGU (+10.00%) and  WAPIC (+9.76%) and the decline of 7 stocks, led by RTBRISCOE (-9.09%) and ROYALEX (-8.24%). Activity level was mixed as the total volume increased by 16.56% while total value decreased by 24.84%, as investors exchanged about 139.68 mn units of shares worth over ₦2.02bn.

Bullish Sentiment Returns In Local Bourse - Brand Spur

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

Read Also:  NGX To Launch NASDAQ-Style Board To Woo Tech Startups

Fixed Income

There was bullish sentiments across the bond yields curve as three of the bonds under our coverage compressed while the yield on the FGN-JUL-2030 closed flat. The yields on the FGN-APR-2023, FGN-MAR-2024 and FGN-JAN-2026 bond papers inched lower by 133bps, 1bp and 30bps respectively.

The yields for the 91, 182 and 364-day papers compressed by 134bps, 209bps and 136bps to close at 1.10%, 1.20% and 3.87% respectively.

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

  • Bullish Sentiments Returns in the Local Bourse, NGX ASI Gains 29bps
  • Bullish Sentiments across the Bond Yield Curve
  • Positive Performance in Global Stocks
  • Brent Crude Reports @$87.33/barrel
  • Positive Performance in African Stocks
  • Naira Closes Flat in the Parallel Market