Profit-taking in ZENITH, GTCO, Others, Turn Local Bourse Backwards, NGX All-Share Index Down 0.08%

The Nigerian Equities Market took a U-turn on Wednesday as invested harvested from Market Leaders, despite improvement in market activities. The NGX All-Share Index depreciated 8bps to close at 66,439.53 points from 66,490.34 points. The bearish outing was largely due to profit-taking some large-cap stocks in the banking industry, such as ZENITH (-1.79%) and GTCO (-0.95%). Consequently, YTD returns declined to 29.64%. Market Capitalization appreciated N27.81 billion to close at N36.36 trillion.

TRANSCORP recorded over 292.409 million shares worth N2.15 billion to top most traded stocks on Wednesday. It was followed by ACCESSCORP which traded over 26.652 million shares, worth N435.49 million. The third place was occupied by DANGSUGAR which traded 24.452 million shares worth N1.45 billion.

Consequently, Investors’ sentiment strengthened as the market breadth closed at 1.13x from 1.06x. This was accounted for by the appreciation in the share prices of 27 stocks, led by CHIPLC (10.00%) and CAPHOTEL (10.00%), and the depreciation in share prices of 24 stocks, led by TRANSCORP (-9.99%) and CWG (-9.88%). Investors exchanged about 631.19 million shares worth N7.79 billion in 10,033 deals, higher than 436.96 million shares worth N7.01 billion in 7,932 deals traded the previous day.

The Insurance sector led gainer after appreciating 1.46%. it was seconded by the Consumer Goods sector which added 0.32%. The Industrial sector gained 0.11%, while the Banking, and Oil & Gas sectors went down -0.64% and -0.02% respectively.

We expect the Equities Market to rebound gradually as investors’ confidence continue to improve.

The Fixed Income Market

The Fixed Income Market closed mixed. While the FGN 2 yaer and 10 year bond compressed 0.02% and 0.34% to close at 10.61% and 14.35% respectively, the FGN 3 year and 5 year bonds  to closed flat at 13.08% and 13.60% respectively.

The yields on the 91 day paper, 182 day paper and 364 day paper closed at  2.25%, 4.75% and 7.41% respectively.

We expect yeilds to rise on the longer end of the curve as a result of rising rates, and reduce on the shorter end as maturity period draws closer.

• Nigerian Equities Market Closed Red, NGX All-Share Index Shed 0.08%.
• There was Mixed Sentiments Across the Bond Yield Curves 
• Possitive Mixed Performance in Global Stocks
• Brent Crude Closed  @$84.83/barrel
• African Stock Markets exhibited Positive Performance, Except NGX
• Naira Closed Flat  in the Parallel Market @915