Profit-Taking Drags Local Bourse Southwards

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 negative yesterday, falling by 0.13% to close at 54,299.76 points. The performance was due to profit-taking in large-cap stocks such as GEREGU (-5.10%) and DANGCEM (-0.71%).

Consequently, the YTD return decreased to 5.95% as market capitalisation decreased by ₦37.03 billion to close at ₦29.56 trillion.

The sectoral performance broadly weakened as four of the five indices under coverage declined. The Insurance index, led the laggards, falling by 0.80% on AIICO (-3.17%). The Banking, Industrial and Consumer Goods Indices, followed suit, falling by 0.61%, 0.31% and 0.02% on ZENITHBANK (-0.40%), DANGCEM (-0.71%) and  DANGSUGAR (-0.29%) respectively. Conversely, the Oil & Gas Index, the only gainer, rose by 0.54% on CONOIL (+10.00%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 3.89x from 2.08x. This was illustrated by the appeciation of 27 stocks, led by  (+10.00%) and LINKASSURE (+8.89%) and the decline of 13 stocks, led by MCNIHOLS (-8.96%) and PRESTIGE (-8.70%). Activity level strengthened as the total volume and value increased by 1331.85% and 460.8%, as investors exchanged about 191.64 mn units of shares worth over ₦4.80bn.

Profit-Taking Drags Local Bourse Southwards - 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:  The Bulls Suppress The Bears In The Local Bourse, NGX ASI Rebounds By 147bps

Fixed Income

There was mixed sentiments across the bond yields curve as two of the bonds under our coverage compressed while the yields on the FGN-APR-2023 and FGN-JUL-2030 closed flat. The yields on the FGN-MAR-2024, and FGN-JAN-2026 compressed by 138bps and 88bps respectively.

The yields on the 91, 182 and 364-day papers closed flat at 1.10%, 1.20% and 3.86% 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 13bps
  • Mixed Sentiments across the Bond Yield Curve
  • Mixed Performance in Global Stocks
  • Commodities Market Closes in the Green
  • Negative Performance in African Stocks
  • Naira Appreciates in the Parallel Market