The Nigerian All-Share Index closed negative, falling by 0.06% to close at 54,189.31 points.

The performance was due to profit-taking in large-cap stocks such as GTCO (-0.40%) and ACCESSCORP (-1.63%). Consequently, the YTD return decreased to 5.73% as market capitalisation decreased by ₦19.09 billion to close at ₦29.52 trillion.

The sectoral performance marginally weakened as three of the five indices under coverage declined while the Imdustrial index closed flat. The Banking index, led the laggards, falling by 0.38% on GTCO (-0.40%). The Insurance and Consumer Goods Indices, followed suit, falling by 0.22%, and 0.16% on LINKASSURE (-4.44%), and UNILEVER (-0.38%) respectively. Conversely, the Oil & Gas index, the only gainer, rose by 0.28% on MRS (+10.00%).

Investors’ sentiment weakened but remained negative as the market breadth decreased to 0.67x from 0.93x. This was illustrated by the decline of 15 stocks, led by VERITASKAP (-4.76%) and LINKASSURE (-4.44%) and the appreciation of 10 stocks, led by MRS (+10.00%) and TRIPPLEG (+9.63%). Activity level strengthened as the total volume and value increased by 64.38% and 332.38%, as investors exchanged about 254.17 mn units of shares worth over ₦15.77bn.

We expect buy-interest to return as the equities market present decent opportunities amid declining yields in the fixed-income market.

Fixed Income

There was mixed sentiments across the bond yields curve as two of the bonds under our coverage compressed while the yields on the FGN-JAN-2026 and FGN-JUL-2030 bond paper closed flat. The yields on the FGN-APR-2023 and FGN-MAR-2024 compressed by 17bps, and 2bps respectively.

The yields on the 91, and 364-day papers closed flat at 3.85%, and 3.79% respectively while the yield on the 182-day paper inched higher by 34bps to close at 4.51%.

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

Banking Stocks Drag the Local Bourse Southwards, NGX ASI Sheds 6bps
Mixed Sentiments across the Bond Yield Curve
Negative Performance in Global Stocks
Brent Crude Reports @ $83.08/barrel
Mixed Performance in African Stocks
Naira Depreciates in the Parallel Market

SOURCE:https://brandspurng.com/2023/02/22/banking-stocks-drag-local-bourse-southwards/