…Volume and value traded increased by 73.2% w/w and 17.9% w/w, respectively
FRI 01 OCT, 2021-theGBJournal- Despite the shortened trading session, the bullish momentum in the local bourse gained steam as the All-Share Index rose above the 40,000 psychological mark to close at 40,221.17 points – the highest level since 21st February 2021. Interestingly, the gains recorded on the last two trading sessions (Wed: 1.9% and Thur: 1.6%) drove the market to the green territory for the week.
Pertinently, investors’ buying interest in DANGCEM (+14.3%), FBNH (+7.3%), NESTLE (+5.7%), FLOURMILL (+2.8%), OKOMUOIL (+2.6%), and GTCO (+2.2%) drove the benchmark Index 3.2% higher. Activity levels mirrored the upbeat performance as volume and value traded increased by 73.2% w/w and 17.9% w/w, respectively.
Consequently, the MTD return turned positive (+2.6%), while the YTD loss moderated to -0.1%. Save for the Insurance (-0.4%) index which declined, gains in the Industrial Goods (+6.7%), Consumer Goods (+3.4%), Oil and Gas (+0.9%), and Banking (+0.6%) indices reflected the overall market performance.
We expect the bears to dominate market performance in the coming week, as investors cash out on the gains across bellwether stocks this week. However, we expect this to be tempered by bargain hunting activities from early birds ahead of the Q3-21 earnings season. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.
Global Stocks
In what can be regarded as a widespread risk-off sentiment, global stocks tumbled as lingering worries about a slowing global economy, a looming energy crisis following soaring inflation and China’s Evergrande crisis dented sentiments.
U.S. (DJIA: -1.1%; S&P: -2.0%) stocks were set to close the week and month in red on fears of rising inflation and uncertainty around Congress’ ability to raise the debt ceiling. Likewise, European stocks posted mixed performances as the STOXX Europe (-1.8%) was to end the week lower as a surge in government bond yields triggered selloffs in tech stocks.
The FTSE 100 (+1.0%) was on course for a weekly gain buoyed by a sharp U.K. economic growth upgrade. Elsewhere, Asian (Nikkei 225: -0.6%; and SSE: -2.0%) shares closed lower on concerns about slowing growth in China amid reactions to the selloffs on Wall Street. Similarly, Emerging (MSCI EM: -1.7%) and Frontier (MSCI FM: -0.5%) market stocks mirrored the bearish trend across global equities consequent upon losses in China (-2.0%) and Kuwait (-0.2%), respectively.
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