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