SAT 04 DEC, 2021-theGBJournal- The bears dictated proceedings in the domestic bourse, as profit-taking activities dominated market performance, with the All-Share Index recording declines on all the trading days of the week.
A total turnover of 1.278 billion shares worth N17.340 billion in 21,052 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 3.435 billion shares valued at N30.915 billion that exchanged hands last week in 21,109 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Holding Company Plc and Access Bank Plc (measured by volume) accounted for 470.731 million shares worth N6.571 billion in 3,887 deals, contributing 36.82% and 37.90% to the total equity turnover volume and value respectively.
Precisely, the NGX ASI declined by 2.6% w/w to close at 42,167.91 points. Notably, selloffs of large caps MTNN (-12.1%), ZENITHBANK (-3.5%), GTCO (-3.6%), SEPLAT (-6.5%) and STANBIC (-2.6%) drove the weekly loss. Consequently, the MTD and YTD return settled at -2.5% and -4.7%, respectively.
This week, activity levels were weaker, as trading volumes and value decreased by 62.8% w/w and 43.9% w/w, respectively. The performances across sectors were broadly negative, as all our coverage indices – the Oil & Gas (-4.5%), Banking (-2.3%), Consumer Goods (-0.6%) and Industrial Goods (-0.1%) – save for the Insurance (+3.0%) index recorded declines.
The Financial Services Industry (measured by volume) led the activity chart with 984.543 million shares valued at N10.247 billion traded in 11,029 deals; thus contributing 77.01% and 59.09% to the total equity turnover volume and value respectively. Consumer Goods Industry followed with 78.724 million shares worth N2.328 billion in 3,137 deals. The third place was the Conglomerates Industry, with a turnover of 48.730 million shares worth N69.840 million in 647 deals
We expect bearish sentiments to remain predominant next week without any positive triggers to turn the tide for Nigerian equities. Nonetheless, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.
Global equities remained under pressure due to concerns surrounding the Omicron COVID-19 variant, with investors awaiting clarity about the heavily mutated variant the potential impact on global recovery. In line with this, the US’ confirmation of its first case of the new Omicron COVID-19 variant rattled Wall street.
However, trading proceedings at the week’s twilight indicate investors seem optimistic that the new variant will not be as economically disruptive as first feared. Nonetheless, we highlight that the benchmark DJIA (-0.7%) and S&P 500 (-0.4%) are poised to close the week lower.
Meanwhile, European equities (STOXX 600: +0.3%; FTSE 100: +1.2%) are set to end the week positive despite similar worries, following news of the EU greenlighting the administering of vaccines tailored to the new variant.
Asian equities were mixed as the Chinese market (SSE: +1.2%) closed higher while Japan’s benchmark index, the Nikkei 225 (-2.5%), shed points.
Elsewhere, the MSCI EM (+1.1%) index posted a positive return, driven by the gain in China, while the MSCI FM (-0.7%) index closed lower, following a 2.4% loss in the Kuwaiti market.
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