Spike in Treasury Yield pushes the NSE ASI bearish 

The Nigerian Stock Exchange market made a loss at the end of the trading session yesterday. The All-Share Index decreased by -0.17% to close at 38,571.89 from 38,636.15 index points. Analysts anticipated the loss due to the 1% increase in the treasury yield (from 8% to 9%) as it has an inverse correlation with stocks performance.

• Nigerian Stock Exchange market value currently stands at NGN 20.19Tr. Its Year-to-Date (YTD) returns currently stands at -4.22%.
• The market closed in a loss as it saw more downturn. GUINNESS led 16 Gainers, and UAC-PROP topped the 27 Losers chart with a noticeable bearish movement by the NSE ASI.

Top gainers

1. GUINNESS up +10.00% to close at N29.15
2. FTNCOCOA up +9.30% to close at N0.47
3. MORISON up +9.30% to close at N0.94
4. HONYFLOUR up +9.17% to close at N1.19
5. LIVESTOCK up +6.74% to close at N1.90

Top losers

1. UAC-PROP down -10.00% to close at N0.72
2. PZ down -9.78% to close at N4.15
3. STUDPRESS down -9.50% to close at N1.62
4. NNFM down -9.26% to close at N4.90
5. CHAMS down -9.09% to close at N0.20

Outlook

The recent 9% treasury yield is expected to play out with a bearish run throughout the week as investors readjust their portfolios and anticipate a further increase in treasury instruments. The prediction of consumer sector dominance has been affirmed by the performance of stocks like GUINNESS, HONYFLOUR  and LIVESTOCK.

The following stocks are on our watchlist: Zenith Bank Plc, Guaranty, Access bank, STANBIC, JAPAULGOLD, GUINNESS and FLOUR MILLS.

• Nairametrics, however, advises cautious participation in the stock market in this era of growing uncertainties.