{"id":107453,"date":"2021-12-16T09:08:15","date_gmt":"2021-12-16T08:08:15","guid":{"rendered":"https:\/\/brandspurng.com\/?p=107453"},"modified":"2021-12-16T09:08:15","modified_gmt":"2021-12-16T08:08:15","slug":"market-sentiment-turns-positive-ngx-asi-inches-up-by-9bps-to-close-at-42357-36-points","status":"publish","type":"post","link":"https:\/\/brandspurng.com\/2021\/12\/16\/market-sentiment-turns-positive-ngx-asi-inches-up-by-9bps-to-close-at-42357-36-points\/","title":{"rendered":"Market Sentiment Turns Positive, NGX ASI Inches Up By 9bps To Close At 42,357.36 Points"},"content":{"rendered":"
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At the end of yesterday’s trading session, the Nigerian equities market closed positive as the benchmark index improved by 0.09% to close at 42,357.36 points. This was mainly due to buy pressures in bellwether stocks such as MTNN (+0.11%) and GTCO (+2.40%). Consequently, the YTD return increased to 5.18% as market capitalisation improved by \u20a620.79 billion to close at\u00a0 \u20a622.10 trillion.<\/b><\/em><\/h4>\n

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Banking index, the biggest loser, declined by 0.20% on UBA (-1.90%). The Industrial and Oil & Gas indices followed suit, falling by 0.11% and 0.05% on WAPCO (-1.61%) and ARDOVA (-0.74%) respectively. On the flip side, the Consumer Goods and Insurance indices, the gainers improved by 0.22% and 0.08% on NB (+1.05%)\u00a0 and\u00a0 CHIPLC\u00a0\u00a0<\/strong>(+1.72%) respectively.<\/p>\n

Investor sentiment strengthened as market breadth increased to 1.46 from 0.72x. This was illustrated by the advance of 19 stocks, led by REDSTAREX (+7.94%) and MEYER (+7.69%) and the decline of 13 stocks, led by ETRANZACT (-9.57%) and ROYALEX (-4.76%). Activity level was mixed as the total volume declined by 16.26% while the total value improved by 14.50% as investors exchanged about a 226.18million units of shares worth over \u20a62.63billion.<\/p>\n

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We expect positive sentiment to persist in the next trading session as the equities market still presents decent opportunities for investors chasing positive real return on investments.<\/strong><\/p>\n

\u00a0Fixed Income<\/strong><\/p>\n

There was bearish sentiment across the bond yield curve as 3 of the 4 bond yields under coverage closed higher while the yield on the FGN-JAN-2026 bond paper closed flat at 11.28%. The yields on the FGN-APR-2023, FGN-APR-2024 and FGN-JUL-2030 bond papers increased by 25bps, 12bps and 3bps respectively.<\/p>\n

Treasury bill yields for the 91, 182 and\u00a0 364-day papers closed flat at 3.00%, 3.74% and 5.63% respectively.<\/p>\n

READ ALSO: Local Bourse Closes The Week In Green<\/a><\/strong><\/em><\/p>\n

\u00a0We expect a further decline in yields in the next trading session on the back of huge demand from investors and the deliberate efforts of the DMO to reduce borrowing costs.<\/strong><\/p>\n

MARKET SNAPSHOT<\/strong><\/p>\n