…Global stocks posted bearish performances
SAT, 03 SEPT, 2022-theGBJournal| Though the local bourse opened the week on a negative note, bargain-hunting activities regained steam in the latter part of the week as the All-Share Index rose above the 50,000 psychological mark, advancing by 0.7% w/w to 50,045.83 points.
The positive outing was underpinned by investors’ interest in GUINNESS (+9.9%), STANBIC (+8.2%), ACCESSCORP (+6.1%), WAPCO (+4.6%), BUAFOODS (+4.5%) and BUACEMENT (+2.7%).
Based on the preceding, the MTD return printed +0.4%, while the YTD return increased to +17.2%. Activity levels were mixed, as trading volume increased by 30.7% w/w, while trading value declined by 15.3% w/w.
A total turnover of 1.195 billion shares worth N12.924 billion in 19,305 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 914.443 million shares valued at N15.263 billion that exchanged hands last week in 18,021 deals, according to NGX Exchange Limited data.
Trading in the top three equities namely Sterling Bank Plc., Fidelity Bank Plc and Access Holdings Plc (measured by volume) accounted for 540.056 million shares worth N1.499 billion in 2,179 deals, contributing 45.18% and 11.60% to the total equity turnover volume and value respectively.
Sectoral performance was largely bullish as the Consumer Goods (+2.0%), Industrial Goods (+1.4%), Banking (+1.2%) and Oil & Gas (+0.6%) indices advanced, while the Insurance index was flat.
The Financial Services Industry (measured by volume) led the activity chart with 1.017 billion shares valued at N5.685 billion traded in 10,107 deals; thus contributing 85.09% and 43.99% to the total equity turnover volume and value respectively. The ICT Industry followed with 37.063 million shares worth N4.575 billion in 1,996 deals. The third place was the Consumer Goods Industry, with a turnover of 35.184 million shares worth N1.209 billion in 2,471 deals.
Meanwhile, Global stocks posted bearish performances as hawkish central banks, fresh lockdowns in China and heightened geopolitical uncertainties drove risk-off sentiments.
Accordingly, US (DJIA: -1.9% and S&P 500: -2.2%) stocks were on track to close in the red as investors assessed the pace of interest rate hikes.
Likewise, European equities (STOXX Europe: -3.2% and FTSE 100: -3.8%) were set for a weekly loss as worries of slowing global growth and energy supply shortages arising from the Russia-Ukraine war dampened sentiments.
In Asia, the Nikkei 225 (-3.5%) tracked the broad selloffs on Wall Street. Conversely, the SSE (-1.5%) posted its third consecutive weekly loss as wider COVID-19 lockdowns in China reignited concerns about production curbs and corporate earnings fallouts. Elsewhere, Emerging (MSCI EM: -3.0%) and Frontier (MSCI FM: -1.9%) markets mirrored the downbeat mood across global equities consequent upon losses in China (-1.5%) and Kuwait (-2.0%), respectively.
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