The Nigerian All-Share Index closed negative, falling by 0.12% to close at 54,359.90 points. The performance was due to profit-taking in large-cap stocks such as GTCO (-0.12%) and ZENITHBANK (-0.40%). Consequently, the YTD return decreased to 6.07% as market capitalisation decreased by ₦36.57 billion to close at ₦29.61 trillion.
The sectoral performance broadly weakened as four of the five indices under coverage declined while the Industrial Index closed flat. The Insurance index, led the laggards, falling by 1.45% on AIICO (-1.64%). The Oil & Gas, Banking, Industrial and Consumer Goods Indices, followed suit, falling by 0.61%, 0.38% and 0.30% on TOTAL (-2.32%), ZENITHBANK (-0.40%) and NB (-2.63%) respectively.
Investors’ sentiment strengthened but remained negative as the market breadth increased to 0.94x from 0.50x. This was illustrated by the appeciation of 16 stocks, led by NNFM (+9.74%) and REDSTAREX (+9.49%) and the decline of 17 stocks, led by GLAXOSMITH (-7.91%) and CORNERST (-4.76%). 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 2bps and 22bps respectively.
The yields on the 91, 182 and 364-day papers closed flat at 1.13%, 1.20% and 3.86% respectively.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Profit-Taking Returns in the Local Bourse, NGX ASI Sheds 12bps
- Mixed Sentiments across the Bond Yield Curve
- Positive Performance in Global Stocks
- Brent Crude Reports @ $83.97/Barrel
- Positive Performance in African Stocks
- Naira Appreciates in the Parallel Market