SAT 20 NOV, 2021-theGBJournal- Bearish sentiments dominated the local bourse this week, as the market recorded losses on four of the five trading sessions following profit-taking activities.
The All-Share index declined by 0.1% w/w to settle at 43,199.27 points, with the MTD and YTD return settling at +2.8% and +7.3%, respectively. Notably, profit-taking in TOTAL (-9.9%), GTCO (-7.5%), FBNH (-3.7%) and NB (-2.8%) drove the weekly loss.
Similarly, all other indices finished lower with the exception of NGX-Main Board and NGX Sovereign Bond indices which appreciated by 0.41% and 1.40% respectively, while the NGXASeM and NGX Growth Indices closed flat.
A total turnover of 1.392 billion shares worth N27.886 billion in 19,990 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.471 billion shares valued at N20.941 billion that exchanged hands last week in 20,410 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Holding Company Plc and Sterling Bank Plc (measured by volume) accounted for 638.319 million shares worth N8.542 billion in 4,116 deals, contributing 45.85% and 30.63% to the total equity turnover volume and value respectively.
Activity levels were mixed, as trading volumes declined by 4.8% w/w while value grew by 33.4% w/w. Sectoral performance was broadly bearish as all sectors closed in the red. The Oil and Gas (-3.6%) led the losers’ chart followed by Banking (-1.6%), Consumer Goods (-1.4%), Insurance (-0.5%), and Industrial Goods (-0.1%) indices.
In the week ahead, we expect a mixed market performance as the bulls and bears are likely to be in a gridlock due to the opposing forces of bargain-hunting activities in stocks with attractive dividend yields ahead of 2021FY dividend declarations and intermittent profit taking activities.
Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.
Global stocks posted mixed performances as investors sentiments were shaped by (1) progress on the Democrats’ Build Back Better bill in the US, (2) uncertainties regarding the path of monetary policy from the US Fed and, (3) spiraling COVID-19 cases in Germany and central Europe which sparked concerns on the negative consequences of re-imposition of lockdowns.
In the US, the (DJIA; -0.6% and S&P; +0.5%) moved in opposite directions as investors weighed the prospect of delayed interest rate hikes from the Fed against news out of Europe about fresh lockdowns. In Europe, the STOXX Europe (+0.2%) managed to eke out a weekly gain despite concerns that Germany may rekindle lockdown measures while the FTSE 100 (-1.3%) declined on the back of losses in the shares of miners and oil companies.
In Asia, the Nikkei 225: (+0.5%) was buoyed by reactions to a record stimulus package approved by the Prime Minister to support struggling households and firms. Similarly, the Chinese market (SSE: +0.6%) posted gains due to rally in logistics stocks late in the week, which masked negative sentiments induced by disappointing earnings from Alibaba. Elsewhere, the Emerging (MSCI EM: -0.9%) closed lower consequent upon sell-offs in India (-1.7%). While the Frontier (MSCI FM: -1.0%) market stocks declined following bearish sentiments in Kenya (-1.2%).
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