…Trading in Rights on United Bank for Africa Plc activated
…The market capitalization eventually added N76.91 billion w/w to close at N59.29 trillion
SAT NOV 23 2024-theGBJournal| The NGX All-Share Index advanced by 11bps week-on-week by the end of the trading session on Friday, capping off a winning week for stocks.
Month-to-Date and Year-to-Date returns settled at +0.2% and +30.8%, respectively.
All other indices finished higher with the exception of NGX Main Board, NGX CG, NGX Banking, NGX Pension, NGX AFR Bank Value, NGX MERI Growth, NGX Growth and NGX Sovereign Bond which fell by 0.02%, 0.75%, 2.57%, 0.45% 2.52%, 0.71% 13.47% and 0.03% respectively while the NGX ASeM index closed flat.
Heavyweight stocks, MTNN (+1.18% w/w), ZENITHBANK (+2.31% w/w) and WAPCO (+28.57% w/w) bolstered the market’s performance, overriding selloffs in BUACEMENT (-0.52% w/w), ARADEL (-1.50% w/w) and GTCO (-2.50%w/w).
The market capitalization eventually added N76.91 billion w/w to close at N59.29 trillion.
Total turnover of 1.952 billion shares worth N35.864 billion in 48,553 deals was traded on the floor of the Exchange during the week, in contrast to a total of 1.482 billion shares valued at N38.875 billion that exchanged hands last week in 44,795 deals.
Trading in the top three equities namely Japaul Gold and Ventures Plc, FBN Holdings Plc and Access Holdings Plc (measured by volume) accounted for 461.500 million shares worth N6.183 billion in 4,658 deals, contributing 23.64% and 17.24% to the total equity turnover volume and value respectively.
The Financial Services Industry (measured by volume) led the activity chart with 1.041 billion shares valued at N16.207 billion traded in 21,099 deals; thus contributing 53.34% and 45.19% to the total equity turnover volume and value respectively.
The Oil and Gas Industry followed with 273.407 million shares worth N6.717 billion in 5,489 deals. Third place was the Services Industry, with a turnover of 141.184 million shares worth N779.166 million in 3,072 deals.
In the week ahead, we believe investors will focus on the outcome of the Central Bank of Nigeria’s (CBN) Monetary Policy Meeting (MPC) meeting scheduled to hold next week to gain further clarity on the movement of yields in the FI market.
During week, Trading in Rights on United Bank for Africa Plc was activated.
The activation kicked off trading in United Bank for Africa Plc’s Rights Issue of 6,839,884,274 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing five ordinary shares held as at the close of business on Tuesday, 5 November 2024, opened on Friday, 15 November 2024
Meanwhile, the global equities market displayed mixed sentiments this week, influenced by a combination of weak economic data in Europe and Asia, concerns over potential tariff hikes under the incoming Trump administration, and escalating tensions between Russia and Ukraine.
Nonetheless, US equities (DJIA: +1.0%; S&P 500: +1.3%) remained on pace to post weekly gains, supported by positive reaction to strong manufacturing PMI data and better-than-expected jobless claims data.
European equities (STOXX Europe: -0.1%, FTSE 100: +1.1%) faced pressure from disappointing economic indicators, including Eurozone flash PMI, UK inflation figures, and Germany’s GDP data, alongside geopolitical concerns.
However, easing worries over recent government budget announcements provided some relief. Elsewhere, Asian markets (Nikkei 225: -0.9%; SSE: -1.9%) declined, as higher-than-anticipated inflation in Japan raised expectations of further rate hikes by the Bank of Japan, while China’s underwhelming fiscal measures and looming threats of increased US tariffs dampened sentiments.
The Emerging Market (MSCI EM: 0.0%) closed flat as the losses in China (-1.9%) were offset by gains in India (+0.7%) and Taiwan (+0.7%), while the Frontier Market (MSCI FM: -0.5%) index closed lower, reflecting losses in Romania (-1.9%).
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