Following the 2-day public holiday, the domestic bourse reopened on a bullish note as the NGX-ASI
advanced 1.0% to close at 50,126.41 points.
It was driven by gains in BUACEMENT (+8.2%), NB (+10.0%), and GUINNESS (+7.5%).
Consequently, market capitalisation increased ₦262.8bn to ₦27.0tn while YTD return rose to 17.3% (previously 16.2%).
Trading activity improved as volume and value traded advanced 109.6% and 28.1% respectively to 669.3m units and ₦6.0bn.
However, there was mixed Sector Performance across sectors according to Afrinvest and InvestmentOne analysts as three indices gained while three also lost.
The Consumer and Industrial Goods indices led the gainers, up 330bps and 297bps respectively, on account of price appreciation in NB (+10.0%), GUINNESS (+7.5%), and BUACEMENT (+8.2%).
Likewise, price uptick in CWG (+9.1%) and CHAMS (+9.5%) drove the AFR-ICT index up 0.2bp. Conversely, the Insurance index
led the laggards, down 377bps, due to sell pressure on NEM (-8.4%) and MANSARD (-7.8%). Similarly, the
Oil & Gas and Banking indices declined 137bps and 98bps respectively, driven by profit-taking in OANDO
(-10.0%), ZENITH (-1.4%), and UBA (-2.4%).
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However, investor sentiment, as measured by market breadth, weakened to 0.07x from 0.38x in the prior session as
31 stocks advanced, 27 declined while 56 closed flat.
Tha analysts anticipate the market would extend its 9-day bullish run on the back of investors’ positive reaction to earnings results to Thursday. They also expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.
According to them, this may be a great period to pick up some quality names with a medium to long-term investment horizon.
However, at the IEFX window, the Naira depreciated by 0.08% and 0.31% against the GBP and EUR to close at N519.33 and N438.42 respectively, while it appreciated by 0.24% against the USD to close at N418.53
It is expected that going forward, the FX market would be dictated by heightened dollar demand and CBN FX policies.
Also, money market rates fell significantly today as Open Buy Back and Overnight rates declined by 742bps each to close at 4.83% and 5.08% respectively. Similarly the bond market traded on a bearish note as yields rose on most maturities. The yields on the 5yr, 7yr and 10yr benchmark bonds expanded by 28bps, 21bps and 17bps close at 11.10%, 11.44% and 11.65% respectively.
