FRI 09 APRIL, 2021-theGBJournal- It was a tranquil four-day trading week at the local bourse as the marginal gains recorded in the last three trading days could not offset the loss on the second trading day of the week.
The All-Share Index consequently dipped by 0.1% w/w to close at 38,866.39 points and this pushed the YTD loss rose to -3.7%.
Activity levels were weak, as trading volumes and value declined by 38.6% w/w and 51.7% w/w, respectively. Notably, profit-taking in large-cap stocks; GUARANTY (-3.5%), WAPCO (-3.0%), BUACEMENT (-1.0%), and ZENITH (-0.7%) drove the weekly loss.
Sectoral performance was broadly negative, as the Consumer Goods (+1.1%) index emerged as the week’s sole gainer. The Banking (-2.5%) index led the losers’ chart, followed by Insurance (-1.5%), Industrial Goods (-0.7%), and Oil and Gas (-0.3%) indices.
According to CORDROS RESEARCH analyst, taking a cue from the trading pattern that ensued this week, we expect market activities to be quiet in the short term as investors keep their gaze on yields direction in the FI market.
‘’Considering that the FY 2020 earnings season is gradually coming to a halt, we now expect investors’ sentiment to be influenced by developments in the macroeconomic landscape and corporate actions. 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, a total turnover of 887.037 million shares worth N9.193 billion in 17,837 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.445 billion shares valued at N19.039 billion that exchanged hands last week in 17,400 deals, according to data provided by the Nigerian Stock Exchange (NSE).
The Financial Services Industry (measured by volume) led the activity chart with 607.224 million shares valued at N6.066 billion traded in 10,125 deals; thus contributing 68.46% and 65.99% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 112.318 million shares worth N572.831 million in 1,450 deals. The third place was Oil and Gas Industry, with a turnover of 57.662 million shares worth N201.453 million in 1,107 deals.
Trading in the top three equities namely Zenith Bank Plc, Access Bank Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 259.248 million shares worth N4.818 billion in 4,970 deals, contributing 29.23% and 52.41% to the total equity turnover volume and value respectively.
Global markets
Save for Asian markets, global stocks fired on all cylinders this week as dovish comments from the U.S Fed Chairman, renewed optimism on the global economic recovery, and a retreat in U.S Treasury yields bolstered risk sentiments despite rising cases of COVID-19 in Asia. In the U.S, the DJIA (+1.1%) and S&P (+1.9%) rallied as investors flocked into heavyweight tech and blue-chip stocks following the fall in bond yields amid expectations of the first-quarter earnings season.
In Europe, the STOXX Europe (+1.1%) and FTSE 100 (+2.8%) were on course to end the week in the green as the region’s sluggish vaccination campaign showed signs of gaining momentum amid declining infection rates. In Asia, the Nikkei 225 (-0.3%) and SSE (-1.0%) were dragged by pandemic-induced selling pressure and expectations that a rollback of ultra-loose monetary stimulus is on the horizon.
Emerging markets (MSCI EM: +1.7%) mirrored the bullish trend in global equities, consequent to the gains in Brazil (+2.6%), which offset losses in China (-0.9%), while Frontier (MSCI FM: -0.1%) market stocks posted marginal losses, primarily driven by weakness in Nigeria (-0.1%).
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