The Nigerian All-Share Index closed positive, rising by 0.78% to close at 54,224.35 points.
The performance was due to buy-interest in large-cap stocks such as AIRTELAFRI (+3.85%) and UCAP (+1.31%). Consequently, the YTD return increased to 5.80% as market capitalisation increased by ₦228.74 billion to close at ₦29.54 trillion.
The sectoral performance broadly strengthened as four of the five indices under coverage increased. The Oil & Gas, led the gainers, rising by 0.86% on CONOIL (+9.93%). The Banking, Insurance and Consumer Goods Indices, followed suit, rising by 0.18%, 0.13%, and 0.02% on UBA (+0.60%), MBENEFIT (+6.25%), and INTBREW (+2.17%) respectively. Conversely, the Industrial index, the only laggard, fell by 0.05% on WAPCO (-0.97%).
Investors’ sentiment strengthened but remained negative as the market breadth increased to 0.93x from 0.72x. This was illustrated by the appreciation of 14 stocks, led by TRIPPLEG (+9.94%) and WAPIC (+9.76%) and the decline of 15 stocks, led by PHARMDEKO (-10.00%) and RTBRISCOE (-6.67%). Activity level weakened as the total volume and value decreased by 37.37% and 4.52%, as investors exchanged about 172.90 mn units of shares worth over ₦3.77bn.
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 bond paper closed flat. The yields on the FGN-MAR-2024, and FGN-JAN-2026 compressed by 5bps, and 8bps respectively.
The yields on the 91, and 364-day papers closed flat at 3.85%, and 3.79% respectively while the yield on the 182-day paper inched lower by 1bp to close at 4.16%.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Domestic Bourse Begins the Week in Positive Territory, NGX ASI Gains 78bps
- Mixed Sentiments across the Bond Yield Curve
- Positive Performance in Global Stocks
- Commodities Market Closes in the Green
- Mixed Performance in African Stocks
- Naira Appreciates in the Parallel Market
