The Nigerian All-Share Index closed lower, by 0.12% to close at 55,722.90 points. The performance was due to profit-taking in GTCO (-3.08%) and UCAP (-2.04%). Consequently, the YTD return decreased to 8.73% as market capitalisation decreased by ₦35.67 billion to close at 30.36 trillion.
The sectoral performance marginally weakened as three of the five indices under coverage declined while the Oil & Gas index closed flat. The Insurance index, led the laggards, falling by 1.91% on MANSARD (-4.76%). The Banking and Industrial indices, followed suit, falling by 0.24% and 0.10% on GTCO (-3.08%) and WAPCO (-1.92%) respectively. Conversely, The Consumer Goods index, the only gainer, rose by 0.01% on HONYFLOUR (+1.82%).
Investors’ sentiment weakened as the market breadth decreased to 0.52x from 0.57x. This was illustrated by the decline of 17 stocks, led by CHAMS (-8.00%) and PRESTIGE (-7.32%) and the appreciation of 9 stocks, led by ENAMELWA (+9.57%) and FTNCOCOA (+7.69%). Activity level strengthened as the total volume and value increased by 11.31% and 10.47%, as investors exchanged about 199.27 mn units of shares worth over ₦2.81bn.
We expect profit-taking to persist as investors look to lock in gains from previous trading days.
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-MAR-2024 and FGN-JAN-2026 compressed by 102bps and 1bp respectively while the yield on the FGN-APR-2023 bond paper inched higher by 1bp.
The yields on the 91 and 182-day papers closed flat at 1.78% and 4.49% respectively, while the yield on the 364-day paper inched higher by 490bps to close at 8.68%.
We expect market activity to be influenced by the liquidity levels in the financial system.
- Profit-Taking Persists in the Local Bourse, NGX ASI Sheds 12bps
- Mixed Sentiments across the Bond Yield Curve
- Positive Performance in Global Stocks
- Brent Crude Reports @ $80.08/barrel
- Negative Performance in African Stocks
- Naira Remains Unchanged in the Parallel Market