Bulls kickstart the Week at NGX trading, ASI up 0.2%

NGX trading resumed the week on a positive note as gains in BUACEMENT(+5.2%), PRESCO (+5.1%) and WAPCO(+1.7%) pushed the NGX-ASI up 0.2% to 131,826.77 points. Consequently, YTD retum improved to 28.1% (previously 27.8%), while market capitalisation rose 0.2% to N83.4tn. Activity level dampened as volume and value traded declined by 78.9% and 65.4% to 706.0m units and N21.6bn, respectively. Negative Sector Performance Performance across our coverage sectors was negatively skewed, as three indices lost, two gained while the AFR-ICT index closed flat. Leading the laggards, the Insurance index fell 1.3% due to sell-offs on AlICO (-7.1%) and CORNERST. Similarly, profit booking on Zenith, FIRSTHOLDCO, OANDO and ETERNA pulled the Banking and Oil & Gas indices down 0.4% and 0.1%, respectively. On the flip side, the Industrial and Consumer Goods indices rose 1.5% and 0.1% respectively due to price appreciation in BUACEMENT, WAPCO, HONEYFLOUR and NESTLE (+0.8%).
Investor sentiment, as measured by market breadth, worsened to -0.26x (from 0.36x in the prior session) as 31 stocks advanced, 45 declined, while 53 closed flat We anticipate continued bullish pattern in tomorrow’s session, barring negative shocks. Last Week, the Nigerian Treasury Bills (NTB) secondary market traded with a broadly mixed tone at the beginning of the week, as early sessions reflected cautious sentiment driven by tight system liquidity. As the week progressed, improved liquidity conditions spurred a reversal in the market’s tone, with late week buy interest driving yields lower across most maturities. Consequently, the average benchmark NTB yield declined by 22bps w-o-w to close at 17.73%.
Specifically, bullish momentum was more pronounced at the mid- and short ends of the curve, where renewed demand drove significant repricing. The 4-Dec-25 and 8-Jan-26 papers saw the steepest yield declines amid sustained buy interest. Similarly, the 7-Aug-25 and 6-Nov-25 bills attracted strong bids, reinforcing the positive tone across the curve. Meanwhile, the long end remained relatively quiet, with investors maintaining a cautious stance on duration, amid evolving liquidity dynamics. This week Wednesday, 23-Jul-25, the Debt Management Office(“DMO”) is scheduled to reissue ₦290.00bn worth of NT-Bills across the standard 91-day, 182-day, and 364-day tenors at the Primary Market Auction (PMA). with ₦326.87bn in NT-Bills expected to mature, we anticipate active participation, particularly at the long end, as investors seek to reinvest freed-up liquidity.
The FGN bonds market sustained a bullish tone throughout the week, supported by renewed investor interest following the softer June Consumer Price Index (CPI) print at 22.22% (vs 22.93% in May). Consequently, the average benchmark yield declined by 35bps w-o-w to settle at 16.32%. In details, Investor appetite was concentrated in the short to mid segment, with sustained interest on benchmark bonds such as the FGN 2027, 2028, 2031, and 2034. Meanwhile, the long end saw selective demand, particularly on the FGN 2042 and 2053 papers, albeit with cautious bidding. Overall, activity reflected a measured bullish sentiment as market participants positioned ahead of the MPC meeting. Going into the week, the Central Bank of Nigeria (CBN) is expected to hold its 301st Monetary Policy Committee (MPC) meeting today Monday 21st and Tuesday 22nd July 2025. We expect the outcome of policy decisions from the MPC meeting to drive market sentiment. We therefore advice investors to take advantage of maturities with relatively attractive offers in the secondary market particularly at the short end of the curve.