…The global equities market experienced mixed sentiments this week as investors grappled with new inflation data
SAT APRIL 13 2024-theGBJournal| The NGX All-Share index fell further by 0.71% to 102,314.56 Friday to close the holiday shortened week.
Similarly, all other indices finished lower with the exception of NGX ASeM and NGX Sovereign Bond indices which closed flat.
Bearish sentiment continued to prevail in some banking stocks like GTCO (-10.00%), FBNH (-6.71%), and ZENITHBANK (-3.73%) outweighing the demands in UBA (+4.57%), TRANSCORP (+9.93%), and FIDELITYBK (+7.53%).
Having lost in the two trading sessions this week, the ASI closed 1.09% w/w lower.
Over the course of the week, losses in GTCO (-13.75% w/w), FBNH (-11.15% w/w), and ZENITHBANK (-5.88% w/w), outweighed buy interests in TRANSCORP (+10.33% w/w), FIDELITYBK (+3.09% w/w) , and STERLINGNG (+1.70% w/w) driving the market’s negative performance.
Consequently, the year-to-date (YTD) return on the index slipped to 36.83%, while the market capitalization lost N632.95 trillion w/w to close at N57.86 trillion.
Trading in the top three equities namely United Bank for Africa Plc, Zenith Bank Plc and Abbey Mortgage Bank Plc (measured by volume) accounted for 447.033 billion shares worth N10.745 billion in 3,513 deals, contributing 39.49% and 37.50% to the total equity turnover volume and value respectively
Analysis of Friday’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 569.96%.
A total of 734.04 billion shares valued at N21.59 billion were exchanged in 12,491 deals. UBA (+4.57%) led the volume and value chart with 148.88m units traded in deals worth N4.01 billion.
Market breadth closed negative at a 0.34-to-1 ratio with declining issues outnumbering the advancing ones. GTCO (-10.00%) topped thirty-four others on the laggard’s table while TRANSCORP (+9.93%) led eleven others on the leader’s log.
Looking ahead, analysts say they anticipate that market sentiments will remain negative, with investors continuing to react unfavorably to the potential dilution stemming from the CBN’s recapitalization initiative.
In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and corporate actions.
Meanwhile, the global equities market experienced mixed sentiments this week as investors grappled with new inflation data, which dampened expectations regarding the timing and magnitude of potential interest rate cuts by the Federal Reserve.
Accordingly, US equities (DJIA: -1.1%; S&P 500: -0.1%) were poised for their second consecutive weekly decline, as the March consumer inflation report diminished hopes of a June rate cut by the Federal Reserve.
Elsewhere, European equities (STOXX Europe: +0.5%; FTSE 100: +1.0%) were on track to finish the week higher as investors digested UK GDP data and ECB interest rate decision.
In Asia, the Chinese market (SSE: -1.6%) faced pressure due to several factors, including currency weakness, disappointing economic data relating to inflation and trade, and reduced expectations for US interest rate cuts.
Meanwhile, the Japanese market (Nikkei 225: +1.4%) rebounded from last week’s losses driven by a weaker yen and gains in tech stocks.
Emerging Markets Index (MSCI EM: +0.9%) remained positive, supported by bullish sentiments in India (+0.3%) and Taiwan (+2.0%), while the Frontier Markets index (MSCI FM: -1.4%) declined following the loss in Romania (-0.6%).
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