Profit-Taking Persists Local Bourse

The Nigerian All-Share Index declined, by 0.02% to close at 54,924.08 points. The performance was due to profit-taking in  bellwether stocks such as GTCO (-0.20%) and ACCESSCORP (-2.25%). Consequently, the YTD return decreased to 7.17% as market capitalisation decreased by ₦6.55 billion to close at 29.92 trillion.
Local Bourse Extend Losses

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.

Profit-Taking Persists Local Bourse - Brand Spur

We expect profit-taking to persist as investors look to lock in gains from previous trading days.

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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-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