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Research

Bargain Hunting Drives the Local Bourse Upward, NGX ASI Gains 4bps

At the end of today’s trading session, the Nigerian All-Share Index closed in green, increasing by 0.04% to close at 43,477.48 points. The performance was due to bargain hunting in bellwether stocks such as DANGCEM (+0.59%) and ZENITHBANK (+0.25%). Hence, the YTD return increased to 1.78% as market capitalisation increased by ₦8.65 billion to close at ₦23.68 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined. The Oil & Gas index, the biggest loser, fell by 0.67% on OANDO (-4.41%). The Insurance, and Consumer Goods indices, followed suit, declining by 0.38%, and 0.17% on MANSARD (-1.23%) and INTBREW (-3.61%) respectively. On the flip side, the Industrial and Banking indices, the gainers, rose by 0.27% and 0.04% on DANGECEM (+0.59%) and ZENITHBANK (+0.25%) respectively.

Investors’ sentiment strengthened as the market breadth increased to 1.09x from 0.63x. This was illustrated by the advance of 12 stocks, led by UNITYBANK (+9.09%) and LINKASSURE (+7.69%) and the decline of 11 stocks, led by HONYFLOUR (-9.09%) and PRESTIGE (-8.70%). Activity level weakened as the total volume and value decreased by 46.64% and 27.62%, as investors exchanged about 133.41mn units of shares worth over ₦1.81bn.

We expect positive sentiment to persist in the next trading session as the equities market still presents decent opportunities for investors chasing positive real returns on investments.

Fixed Income

There was quiet outing across the bond yields curve as three of the bonds under our coverage closed flat while the FGN-APR-2023 bond paper compressed by 1bp. The yields on FGN-MAR-2024, FGN-JAN-2026 and FGN-JUL-2030 bond papers remained unchanged.

The yields for the 91, 182 and 364-day papers closed flat at 11.87%, 8.36% and 15.28% respectively.

FORECAST

We expect market activity to be influenced by the liquidity levels in the financial system.

  • Bargain Hunting Drives the Local Bourse Upward, NGX ASI Gains 4bps
  • Quiet Outing across the Bond Yield Curve
  • Negative Performance in Global Stocks
  • Brent Crude Reports @ $93.97/barrel
  • Positive Performance in African Stocks