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.
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 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
