Profit-Taking Returns In Local Bourse

Profit-Taking Returns In Local Bourse
Profit-Taking Returns In Local Bourse

The Nigerian All-Share Index today closed negative, falling by 0.06% to close at 54,327.50 points. The performance was due to profit-taking in large-cap stocks such as MTNN (-0.82%) and NB (-0.49%). Consequently, the YTD return decreased to 6.00% as market capitalisation decreased by ₦17.56 billion to close at ₦29.59 trillion.

The sectoral performance marginally weakened three of the five indices under coverage declined. The Insurance index, led the laggards, falling by 1.47% on CORNEST (-1.67%). The Consumer Goods, and Industrial indices, followed suit, falling by 0.19%, and 0.01% on NB (-0.49%), and CHAMPION (-7.22%) respectively. Conversely, the Oil & Gas and Banking indices, the gainers, rose by 0.72% and 0.01% on CONOIL (+9.95%) and ZENITHBANK (+0.40%) respectively.

Investors’ sentiment weakened as the market breadth decreased to 0.59x from 0.94x. This was illustrated by the decline of 22 stocks, led by INTENEGINS (-9.49%) and SOVRENINS (-9.09%) and the appreciation of 13 stocks, led by CONOIL (+9.95%) and TRIPPLEG (+9.60%). 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 closed flat while the yields on the FGN-MAR-2024 compressed by 2bps. The yields on the FGN-JAN-2026 inched higher by 13bps while the yields on the FGN-APR-2023 and FGN-JUL-2030 bond papers closed flat.

The yields on the 91, and 364-day papers closed flat at 1.13%, and 3.86% respectively while the yields on the 182-day paper compressed by 98bps.

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

  • Local Bourse Closes the Week in the Red, NGX ASI Sheds 6bps
  • Mixed Sentiments across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude Reports @ $86.53/Barrel
  • Mixed Performance in African Stocks
  • Naira Remain Unchanged in the Parallel Market