NGX close on bearish note, index declining by 0.37%

The Nigerian equities market closed on a bearish note, with the benchmark index declining by 0.37%, with profit taking in Aradel bringing the year-to-date return down to 55.67%.

Market activity remained negative during the session, as trading volume declined by 35.73% to 587.9 million shares, while total value traded increased by 24.47% to ₦27.95 billion.

Market breadth remained firmly negative, with 30 gainers against 35 losers, highlighting widespread selling pressure across the market.
Sectoral performance was broadly bearish.

The banking sector dominated trading activity, accounting for the largest share of both volume and value traded during the session.

On the performance chart, INTENEGINS and OMATEK led the gainers’ table, while MCNICHOLS and  ABCTRANS recorded the steepest losses.

Banking system liquidity tightening progressed today, settling at a net negative position of ₦6.30 trillion.

In contrast, funding costs decelerated by 4bps in Overnight Rate to close at 22.15%, while the Nigerian Overnight Financing Rate (NOFR) and Open Repo Rate remained unchanged at 22.00%.

In the FGN bond market, trading activity remained muted, with pressure rising in few bonds and most bond yields unchanged since the start of the week.

However, bonds maturing in 2027 maintained mild buying interest. Overall, average yields held steady at 16.31%.

Meanwhile, the Nigerian Treasury Bills continued to edge higher slightly as buying interest persist for short-dated bills. With that, average yields declined marginally to close 17.44% from 17.45%.

Today, Nigeria’s Eurobond market traded mixed as sentiment improved in some bonds. This led to a slight drop in average yield to close at 6.74% from 6.75%.

Meanwhile, market risk perception dropped on improved global macroeconomic report and fall in global oil prices. This depleted inflation concerns and improved investors’ sentiment.