Nigerian Stocks Record Flattish Performance As NGX ASI Remains Unchanged

By
Brand Spur
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0
Nigerian Stocks Record Flattish Performance As NGX ASI Remains Unchanged
Nigerian Stocks Record Flattish Performance As NGX ASI Remains Unchanged

The Nigerian All-Share Index closed flat, to close at 55,603.94 points. Consequently, the YTD return decreased to 8.49% as market capitalisation decreased by ₦889 million to close at 30.29 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Banking index, led the laggards, falling by 0.29% on ZENITHBANK (-1.33%). The Oil & Gas and Consumer Goods indices, followed suit, falling by 0.42% and 0.05% on MRS (-10.00) and DANGSUGAR (-0.26%) respectively. Conversely, the Insurance and Industrial indices, the gainers, rose by 0.48% and 0.33% on MBENEFIT (+3.03%) and DANGCEM (+0.72%) respectively.

Investors’ sentiment strengthened but remained negative as the market breadth increased to 0.80x from 0.68x. This was illustrated by the appreciation of 16 stocks, led by CAVERTON (+9.62%) and UACN (+7.60%) and the decline of 25 stocks, led by MRS (-10.00%) and NCR (-9.88%). Activity level was mixed as the total volume increased by 29.07% while total value decreased by 0.31%, as investors exchanged about 159.46 mn units of shares worth over ₦2.48bn.

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 yield on the FGN-JUL-2030 bond papers closed flat. The yields on the FGN-APR-2023 and FGN-JAN-2026 compressed by 28bps and 24bps respectively. The yield on the FGN-MAR-2024 bond paper advanced by 36bps.

The yields on the 91, and 364-day papers closed flat at 2.01%, and 3.79% respectively, while the yield on the 182-day paper compressed by 238bps to close at 1.78%.

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

  • Flattish Performance in the Domestic Bourse, NGX ASI Remains Unchanged
  • Mixed Sentiments across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude Reports @ $84.53/barrel
  • Negative Performance in African Stocks
  • Naira Marginally Depreciates in the Parallel Market