The Nigerian All-Share Index closed negative, falling by 0.06% to close at 54,189.31 points.
The performance was due to profit-taking in large-cap stocks such as GTCO (-0.40%) and ACCESSCORP (-1.63%). Consequently, the YTD return decreased to 5.73% as market capitalisation decreased by ₦19.09 billion to close at ₦29.52 trillion.
The sectoral performance marginally weakened as three of the five indices under coverage declined while the Imdustrial index closed flat. The Banking index, led the laggards, falling by 0.38% on GTCO (-0.40%). The Insurance and Consumer Goods Indices, followed suit, falling by 0.22%, and 0.16% on LINKASSURE (-4.44%), and UNILEVER (-0.38%) respectively. Conversely, the Oil & Gas index, the only gainer, rose by 0.28% on MRS (+10.00%).
Investors’ sentiment weakened but remained negative as the market breadth decreased to 0.67x from 0.93x. This was illustrated by the decline of 15 stocks, led by VERITASKAP (-4.76%) and LINKASSURE (-4.44%) and the appreciation of 10 stocks, led by MRS (+10.00%) and TRIPPLEG (+9.63%). Activity level strengthened as the total volume and value increased by 64.38% and 332.38%, as investors exchanged about 254.17 mn units of shares worth over ₦15.77bn.
We expect buy-interest to return as the equities market present 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-JAN-2026 and FGN-JUL-2030 bond paper closed flat. The yields on the FGN-APR-2023 and FGN-MAR-2024 compressed by 17bps, and 2bps 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 higher by 34bps to close at 4.51%.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Banking Stocks Drag the Local Bourse Southwards, NGX ASI Sheds 6bps
- Mixed Sentiments across the Bond Yield Curve
- Negative Performance in Global Stocks
- Brent Crude Reports @ $83.08/barrel
- Mixed Performance in African Stocks
- Naira Depreciates in the Parallel Market
