SAT 14 AUG, 2021-theGBJournal- The NGX All-Share Index and Market Capitalization appreciated by 1.83% to close the week at 39,522.34 and N20.592 trillion respectively. The month-to-date (MTD) return also rose to +2.6%, while the YTD return for the index moderated to -1.8%.
Activity levels were stronger, as trading volume and value grew by 66.4% w/w and 55.0% w/w, respectively.
Also, sectoral performance was broadly positive following gains in the Banking (+0.5%), Oil and Gas (+0.4%) and Consumer Goods (+0.3%) indices, and declines in the Insurance (-2.5%), and Industrial Goods (-1.4%) indices.
The Financial Services Industry (measured by volume) led the activity chart with 584.793 million shares valued at N3.728 billion traded in 8,658 deals; thus contributing 36.32% and 29.62% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 525.860 million shares worth N3.655 billion in 3,553 deals. The third place was Natural Resources Industry, with a turnover of 250.928 million shares worth N1.376 billion in 72 deals.
Trading in the top three equities namely Honeywell Flour Mill Plc, B.O.C. Gases Plc and Flour Mills Nig. Plc (measured by volume) accounted for 724.067 million shares worth N 3.909 billion in 1,061 deals, contributing 44.97% and 31.06% to the total equity turnover volume and value respectively.
A total turnover of 1.610 billion shares worth N12.586 billion in 18,622 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 989.593 million shares valued at N8.183 billion that exchanged hands last week in 19,617 deals, according to NGX Exchange data.
In the coming week, we expect investors to be focused on the bond auction scheduled to hold on Wednesday as they keep an eye on the movement of yields in the FI market. As a result, we envisage cautious trading amid 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.
Meanwhile, Equities markets across the globe edged higher as investors flocked into cyclical and tech stocks, following the US Senate’s approval of President Biden’s USD1.20 trillion bipartisan Infrastructure Bill.
In addition, US inflation data and robust corporate earnings reports in Europe released during the latter part of the week further strengthened investors’ sentiments. Accordingly, US stocks (DJIA: +0.8%; S&P: +0.5%) attained another record high as investors reacted positively to the inflation and jobless claims data.
In Europe, the STOXX Europe (+1.2%) and FTSE 100 (+1.3%) were on track for a second consecutive week of gains as optimism over a robust earnings season and economic recovery prospects bolstered buying interests in cyclical and luxury stocks. Similarly, Asian equities (Nikkei 225: +0.6%; SSE: +1.7%) closed the week higher, despite lingering concerns about Beijing extending its regulatory crackdown amid rising coronavirus cases related to the Covid-19 delta variant.
Elsewhere, Emerging (MSCI EM: -0.1%) market stocks declined marginally, consequent upon losses in South Korea (-3.0%). In comparison, Frontier (MSCI FM: +0.7%) markets stocks were on track to closer higher following gains in Kuwait (+0.8%).
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