SAT 08 JAN, 2022-theGBJournal- The dominance of the bulls ensured the local bourse kicked off the first trading week of 2022 on a strong footing, as the benchmark index recorded gains in all trading sessions this week.
A total turnover of 2.027 billion shares worth N59.014 billion in 15,750 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 995.361 million shares valued at N13.209 billion that exchanged hands last week in 10,264 deals.
Precisely, the NGX All-Share Index advanced by 2.7% w/w to close at 43,854.42 points. Notably, foreign investors’ demand for AIRTELAFRI (+10.0%), and bargain hunting in BUAFOODS (+9.9%), WAPCO (+7.7%), and FBNH (+4.0%) stocks spurred the weekly gain. Accordingly, the YTD return printed +2.7%.
Activity levels were strong, as trading volume and value surged by 103.7% w/w and 246.8% w/w, respectively. However, the performances across the sectors were mixed, as the Oil and Gas (+2.7%), Banking (+0.8%), and Industrial Goods (+0.3%) indices closed positive while the Insurance (-0.9%), and Consumer Goods (-0.9%) declined.
Trading in the top three equities namely BUA Foods Plc, Wema Bank Plc, and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 1.349 billion shares worth N51.253 billion in 1,120 deals, contributing 67 % and 86.85 % to the total equity turnover volume and value respectively.
Analysts at Cordros Research said, in the near term, positioning for 2021FY dividends will continue to support buying activities in the market even as institutional investors continue to search for clues on the direction of yields in the FI market.
‘’However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.’’
Meanwhile, Global stocks ended the first trading week of 2022 on a sour note, as investors continue to grapple with rising Omicron cases and concerns that the US Federal Reserve may turn to a more hawkish stance in the coming months.
Accordingly, US stocks (DJIA -0.3%; and S&P 500: -1.5%) were poised for a weekly loss after the minutes of the US Fed’s meeting and payroll data (released on Friday) fueled worries that policymakers may unwind economic stimulus sooner than expected.
European equities posted mixed performances as the STOXX Europe: (-0.2%) was weighed down by disappointing regional economic data. Conversely, the FTSE 100: (+0.8%) managed to eke out a weekly gain, supported by the rally in banking stocks.
Asian markets (Nikkei 225: -1.1%; and SSE: -1.7%) declined following a rout in Chinese tech stocks amid surging coronavirus cases in Japan.
Elsewhere, the Emerging (MSCI EM: -1.2%) and Frontier (MSCI FM: -0.9%) market stocks posted negative performances following bearish sentiments in the Chinese (-1.7%) and Bahrain (-0.5%) markets, respectively.
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