SAT 25 DEC, 2021-theGBJournal- The bears dictated proceedings in the domestic bourse, as profit-taking activities dominated market performance, with the benchmark index recording declines on three of the five trading sessions of the week.
Precisely, the NGX All-share Index declined by 0.2% to close at 42,262.85 points. Market Capitalization also depreciated 0.21% to close at N22.060 trillion.
Notably, selloffs of FBNH (-4.6%), MTNN (-2.3%), ACCESS (-2.2%), and ZENITH BANK (-1.6%) stocks drove the weekly loss. Consequently, the MTD and YTD return settled at -2.3% and +4.9%, respectively.
Activity levels were weak, as trading volumes and value declined by 26.7% w/w and 18.8% w/w, respectively. Sectoral performance was broadly positive as the Insurance (+1.8%), Consumer Goods (+0.8%), Industrial Goods (+0.4%) and Banking (+0.1%) indices closed in the green. The Oil and Gas (-0.5%) index was the sole loser.
The Financial Services Industry (measured by volume) led the activity chart with 574.223 million shares valued at N4.861 billion traded in 7,794 deals; thus contributing 59.50% and 39.03% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 246.783 million shares worth N 2.065 billion in 382 deals. The third place was the Consumer Goods Industry, with a turnover of 30.307 million shares worth N1.669 billion in 2,157 deals.
A total turnover of 965.061 million shares worth N12.455 billion in 14,802 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.317 billion shares valued at N15.330 billion that exchanged hands last week in 18,292 deals.
Trading in the top three equities namely UACN Plc, FBN Holdings Plc, and Sovereign Trust Insurance Plc (measured by volume) accounted for 378,555 million shares worth N3.266 billion in 14,802 deals, contributing 39.23% and 26.22 % to the total equity turnover volume and value respectively.
As the year draws to a close, we expect yield-seeking investors to take positions in stocks with attractive dividend yields ahead of the 2021FY dividend declarations. 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 posted positive performances as sentiments were buoyed by optimism that the Omicron coronavirus variant may not derail the global economic recovery amid reinstatement of travel bans and lockdown measures. Accordingly, US stocks (DJIA +1.7%; and S&P 500: +2.3%) reached all-time highs, following positive economic data later in the week. Similarly, European equities (STOXX Europe: +1.9% and FTSE 100: +1.4%) rallied on hopes that the global economy will shrug off the Omicron variant flareups. Asian markets posted mixed performances, as the Nikkei 225 (+0.8%) posted a weekly gain, mirroring the trend on Wall Street, while Chinese equities (SSE: -0.4%) declined following heightened US-China tensions and renewed lockdown in China. Elsewhere, the Emerging (MSCI EM: +0.3%) and Frontier (MSCI FM: +0.3%) market stocks posted positive returns consequent upon gains in the Taiwanese (+0.8%) and Kuwaiti (+1.3%) markets, respectively.
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