At the end of yesterday’s trading session, the Nigerian All-Share Index closed in the green, rising 1.07% to close at 43,942.82 points.
The performance is due to the purchase of interest on large cap stocks such as AIRTELAFRI (+0.37%) and DANGCEM (+7.77%). Consequently, the YTD yield increased to 2.87% as the market capitalization increased by ₦253.45 billion to close at ₦23.93 trillion.
Sector performance strengthened slightly as three of the five indices covered advanced. The Industrial Index, the biggest gainer, rose 3.51% on DANGCEM (+7.77%). The Oil & Gas and Banking indices followed suit, falling 0.12%, and 0.01% on MRS (+9.83%) and GTCO (+0.28%) respectively. On the other hand, the Insurance and Consumer Goods indices, losers, fell by 1.72% and 0.66% on AIICO (-1.79%) and NB (-5.66%) respectively.
Investor sentiment weakened as market breadth declined to 0.94x from 1.09x. This was illustrated by the fall of 16 stocks, led by JBERGER (-9.81%) and CADBURY (-9.69%) and the increase of 15 stocks, led by MRS (+9.83%) and COURTVILLE (+8.70%). The level of activity strengthened as total volume and value increased by 203.58% and 71.01% as investors traded approximately 405.00 million units of shares worth greater than £3.10 billion.
We expect the positive sentiment to persist into the next trading session as the equity market continues to present attractive opportunities for investors looking for positive real returns on investments.
Sentiments were mixed on the bond yield curve, with two of the bonds under our coverage closing higher while bonds FGN-MAR-2024 and FGN-JUL-2030 closed flat. The yields of the FGN-APR-2023 and FGN-JAN-2026 bonds were compressed by 218 basis points and 31 basis points respectively.
Yields on 91-day paper compressed 1bp to close at 11.86%, while 364-day paper edged up 23bp to close at 15.51%. The yield on the 182-day paper remained unchanged at 8.36%.
We expect market activity to be influenced by liquidity levels in the financial system.
- Sustained buying interest in the national stock exchange, NGX ASI gains 107 basis points
- Mixed feelings on the bond yield curve
- Positive performance of global equities
- Brent crude reports at $92.72/barrel
- Positive performance of African equities