SAT 11 SEPT, 2021-theGBJournal- The bears consolidated their hold on the local bourse as investors booked profit across bellwether stocks throughout the week. Precisely, sell-offs in AIRTELAFRI (-4.7%), FLOURMILL (-3.5%), GTCO (-2.9%) and STANBIC (-2.4%) drove the weekly loss.
Thus, the NGX All-Share Index and Market Capitalization depreciated by 0.86% to close the week at 38,921.78 and N20.279 trillion respectively.
Consequently, the MTD and YTD losses increased to -0.8% and -3.3%, respectively. However, activity levels were stronger, as trading volumes and value rose by 7.9% w/w, and 52.1% w/w, respectively.
Performance across sectors was mixed as the Oil and Gas (+2.3%), and Consumer Goods (+0.2%) indices recorded gains, while the Insurance (-3.4%) and Banking (-1.0%) indices declined. The Industrial Goods index closed flat.
Overall, a total turnover of 1.426 billion shares worth N13.073 billion in 19,315 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.338 billion shares valued at N8.650 billion that exchanged hands last week in 19,830 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.136 billion shares valued at N8.201 billion traded in 10,700 deals; thus contributing 79.68% and 62.73% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 76.520 million shares worth N1.383 billion in 3,076 deals. The third place was Conglomerates, with a turnover of 58.222 million shares worth N186.293 million in 769 deals.
Trading in the top three equities namely FBN Holdings Plc, Access Bank Plc and Wema Bank Plc (measured by volume) accounted for 626.756 million shares worth N4.458 billion in 2,802 deals, contributing 43.95% and 34.10% to the total equity turnover volume and value respectively.
In the week ahead, we anticipate cautious trading in the bourse following the MPC meeting scheduled for next week. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.
Meanwhile, Global stocks extended losses for the second consecutive week following investors’ angst about a slower global economic recovery and the prospect of reduced central bank stimulus. Consequently, US (DJIA: -1.4%; S&P: -0.9%) stocks were set to end the week lower, as the relentless spread of the COVID-19 delta variant continues to undermine global growth prospects.
European equities (STOXX Europe: -0.7%, and FTSE 100: -1.3%) were also negative, as investors weighed risks of tighter monetary policies after the European Central Bank signalled a slowdown of its bond purchases.
On the other hand, Asian markets were bullish, with the Nikkei 225 (+4.3%) closing higher as Prime Minister Yoshihide Suga’s resignation announcement continued to fuel investors’ optimism. The SSE (+3.4%) was lifted by a rebound in tech stocks following discussions between Chinese leader Xi Jinping and US President Joe Biden amid frayed ties.
Elsewhere, Emerging markets (MSCI EM: -1.2%) stocks mirrored the downbeat mood across global equities consequent upon losses in South Korea (-2.4%). In comparison, Frontier (MSCI FM: +0.4%) market stocks posted marginal gains primarily driven by gains in the Vietnamese (+0.8%) market.
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