The Nigerian equities market kicked off the trading week on a positive note, with the All-Share Index (ASI) advancing by 0.18% to reach 102,042.32 points. This bullish run was accompanied by a surge in market capitalization, which grew by N17.97 billion to reach N36.88 trillion. The year-to-date gain for the market has now reached 30.9%, reflecting the overall positive sentiment among investors.Thank you for reading this post, don't forget to subscribe!
Key sectors driving the market’s performance included Banking and Consumer Goods, with more gainers (32) than laggards (23). Notable advancers for the day included CHAMS, NCR, ROYALEX, SUNUASSUR, and TIP, with significant share price movements ranging from 6.04% to 10.00%. Conversely, some stocks experienced losses, with INFINITY, JOHNHOLT, PZ, MAYBAKER, and DEAPCAP declining by various percentages.
Sectoral performance was mixed, with the Banking and Consumer Goods indexes leading the gainers, while the Insurance sector faced a decline. Trading activity on the Nigerian Stock Exchange (NGX) saw a decrease in both the total number of deals and trading volume compared to the previous session. Nevertheless, ACCESSCORP emerged as the most traded security in terms of volume, with GTCO leading in terms of traded value.
In the money market, NIBOR rates trended lower across all tenor buckets, indicating an improvement in liquidity. The Overnight NIBOR declined by 1.94% to close at 17.00%, while the 1-month, 3-month, and 6-month NIBOR also decreased. Similarly, key money market rates such as the open repo rate (OPR) and overnight lending rate (OVN) declined.
Meanwhile, in the Nigerian Interbank Treasury Bills market, yields across various maturity periods declined, leading to bullish movements. Average T-Bills yield marginally decreased by 2 basis points to close at 14.69%.
In the bond market, trading activity was bearish, resulting in an increase in average yield. The secondary market for FGN Bonds experienced a yield expansion, particularly in the JUN-33 FGN paper.
In the foreign exchange market, the Naira depreciated against the US dollar, closing at N1,534.39 per dollar from N1,469.97. Similarly, in the parallel market, the Naira weakened against the US dollar.
Global commodity markets saw a decline in crude oil prices, with WTI crude futures and Brent Crude decreasing on Monday.
Source: Cowry Asset Management Limited (COWRY) Research Desk