SAT, 24 SEPT, 2022-theGBJournal| The Nigerian equities market mirrored the downbeat mood across global stocks, as investors booked profits on bellwether stocks. Precisely, the All-Share index shed 0.9% to close at 49,026.62 points.
The downturn was impacted by losses in BUACEMENT (-10.4%), TOTAL (-10.0%), GUINNESS (-5.6%), GTCO (-4.6%) and SEPLAT (-3.9%) stocks.
Consequently, the MTD loss increased to -1.6%, while the YTD gain moderated to +14.8%. Activity levels were mixed, as trading volume declined by 21.8% w/w while value traded increased by 17.8% w/w.
A total turnover of 562.856 million shares worth N9.438 billion in 16,013 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 719.398 million shares valued at N8.004 billion that exchanged hands last week in 17,444 deals, according to NGX Exchange data.
Sectoral performance was broadly negative following losses in the Oil & Gas (-4.7%), Industrial Goods (-3.9%), Insurance (-2.1%), and Consumer Goods (-0.2%) indices. The Banking (+2.1%) index was the sole gainer of the week.
The Financial Services Industry (measured by volume) led the activity chart with 381.958 million shares valued at N4.551 billion traded in 8,627 deals; thus contributing 67.86% andv48.21% to the total equity turnover volume and value respectively. The ICT Industry followed with 59.345 million shares worth N2.480 billion in 1,272 deals. The third place was the Services Industry, with a turnover of 32.212 million shares worth N95.807 million in 607 deals.
Trading in the top three equities namely Zenith Bank Plc, NGX Group Plc and Guaranty Trust Holding Company Plc. (measured by volume) accounted for 183.929 million shares worth N3.499 billion in 3,628 deals, contributing 32.68% and 37.07% to the total equity turnover volume and value respectively.
Key Market Highlights
| Indicators | Current | Change (%) | YTD |
| All-Share Index | 49,026.62 | -0.33 | +14.77 |
| Market Cap. (N ‘trillion) | 26.44 | -0.33 | +18.60 |
| Volume (millions) | 169.18 | +33.38 | |
| Value (N ‘billion) | 3.19 | +79.16 |
Dividend Information for 2022
| Company | Dividend (Bonus) | Closure Date | Payment Date |
| ACCESSCORP | N0.20 (interim) | 28-Sep-22 | 12-Oct-22 |
| GTCO | N0.30 (interim) | 21-Sep-22 | 30-Sep-22 |
| UBA | N0.20 (interim) | 22-Sep-22 | 29-Sep-22 |
| STANBIC | N1.50 (interim) | 7-Sep-22 | 21-Sep-22 |
| ZENITHBANK | N0.30 (interim) | 7-Sep-22 | 13-Sep-22 |
| SEPLAT | $0.025 (interim) | 15-Aug-22 | 9-Sep-22 |
| CUSTODIAN | N0.10 (interim) | 26-Aug-22 | 1-Sep-22 |
In the week ahead, we believe investors will be focused on the outcome of the MPC meeting scheduled to hold next week to gain further clarity on the movement of yields in the FI market. As a result, we envisage an extension of the cautious trading theme, especially from domestic investors.
Meanwhile, equities around the globe settled lower as the Fed’s outlook for subsequent rate hikes dampened investors’ sentiments and reignited concerns over a Fed-induced recession. Accordingly, US (DJIA: -2.4% and S&P 500: -3.0%) stocks slipped over recession fears following the Fed’s latest 75bps rate hike.
Likewise, European equities (STOXX 600: -2.3% and FTSE 100: -1.1%) were on course for a weekly loss as investors reacted negatively to rate hikes announcements by global central banks. Similarly, in Asian markets, the Nikkei 225 (-1.5%) declined, taking a cue from the rout on Wall Street.
The SSE (-1.2%) also recorded a weekly loss, driven by losses in Chinese tech companies and developers amid concerns about rising borrowing costs. The Emerging (MSCI EM: -2.3%) and Frontier (MSCI FM: -2.2%) markets also settled lower following the losses in China (-1.2%) and Vietnam (-2.5%), respectively.
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