FRI 18 JUNE, 2021-theGBJournal- The NGX All-share Index shed 1.3% w/w to close at 38,648.91points after a four trading session occasioned by the public holiday declared by the Federal Government on Monday June 14, 2021 to mark Democracy Day celebration.
Total turnover of 981.147 million shares worth N10.384 billion in 15,001 deals were traded by investors on the floor of the Exchange, in contrast to a total of 1.058 billion shares valued at N12.831 billion that exchanged hands last week in 17,854 deals.
Specifically, foreign investors’ sell-offs of AIRTELAF (-10.0%) and profit-taking in OKOMUOIL (-9.4%) and STANBIC (-4.9%) drove the weekly loss.
Consequently, the MTD return decreased to 0.5%, while the YTD loss increased to -4.0%. Activity levels were mixed, as trading volume declined by 9.4% w/w, while trading value rose by 8.8% w/w.
On the other hand, sectoral performance was broadly positive as the Banking (+1.1%), Oil and Gas (+1.0%), Insurance (+0.8%), and Consumer Goods (+0.2%) indices recorded gains. Elsewhere, the Industrial Goods index closed flat.
The Financial Services Industry (measured by volume) led the activity chart with 695.803 million shares valued at N5.178 billion traded in 8,616 deals; thus contributing 70.92% and 49.86% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 75.879 million shares worth N1.227 billion in 2,263 deals. The third place was Conglomerates Industry, with a turnover of 67,430 million shares worth N367.306 million in 612 deals.
According to NGX Exchange data, trading in the top three equities namely Zenith Bank Plc, Sterling Bank Plc and Wema Bank Plc (measured by volume) accounted for 265.649 million shares worth N2.450 billion in 2,742 deals, contributing 27.08% and 23.60% to the total equity turnover volume and value respectively.
Thirty-eight equities appreciated in price during the week, higher than Thirty-five in the previous week. Twenty-five equities depreciated in price lower than Thirty-six equities in the previous week, while ninety-three equities remained unchanged higher than eighty-nine equities recorded in the previous week.
Global stocks posted bearish performances this week as investors’ sentiments for risky assets waned in the wake of the Fed’s decision which pointed towards interest rate raises in 2023, a year earlier than the market anticipated.
Strong indications that the committee will soon start deliberating on tapering bond purchases further unsettled investors. In the U.S, the DJIA (-1.9%) and S&P (-0.6%) were on course to end the week in red as investors remained cautiously optimistic about reflation trade after digesting the U.S. Federal Reserve’s shift to a hawkish stance.
In Europe, the STOXX Europe (+0.3%) and FTSE 100 (+0.1%) were on track for a weekly gain as investors traded cautiously ahead of the BOE monetary policy decision amid relatively strong U.K economic data. In Asia, the Nikkei 225: (+0.1%) posted marginal gains amid Fed tightening concerns.
Elsewhere, the SSE: (-1.8%) was on course for a weekly loss as sentiments dampened by the sell-off on Wall Street. Emerging (MSCI EM: -1.4%) stocks also mirrored the bearish trend across global equities consequent to the losses in China (-1.8%).
Similarly, the Frontier (MSCI FM: -0.5%) market stocks declined, following weakness in Nigeria (-1.3%).
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