SAT, 12 NOV, 2022-theGBJournal| Activities in the domestic bourse took a negative turn this week as the loss recorded on the second trading day (-1.8%) proved sufficient in wiping off the cumulative 1.2% gain as of Friday.
Precisely, the All-Share Index declined by 0.7% to 43,968.75 points, driven by sell-offs in GUINNESS (-10.0%), FLOURMILL (-9.9%), NB (-6.3%), MTNN (-2.0%) and DANGCEM (-0.8%). Consequently, the MTD and YTD returns printed +0.3% and +2.9%, respectively.
Similarly, all other indices finished lower with the exception of NGX Banking, NGX-AFR Bank Value, NGX AFR Div. Yield and NGX MERI Value, which appreciated by 0.17%, 0.38%, 1.10% and 0.20% respectively, while the NGX ASeM, NGX Growth and NGX Sovereign Bond indices closed flat.
Likewise, activity levels were weaker than the prior week, as trading volume and value declined by 21.9% w/w and 24.5% w/w, respectively.
Trading in the top three equities namely Access Holdings Plc, Sterling Bank Plc and Transnational Corporation Plc. (measured by volume) accounted for 577.512 million shares worth N2.761 billion in 1,132 deals, contributing 52.44% and 23.57% to the total equity turnover volume and value respectively.
Elsewhere, the performances across sectors were broadly negative, as all our coverage indices – the Insurance (-2.2%), Consumer Goods (-1.9%), Oil and Gas (-0.7%), and Industrial Goods (-0.3%) — save for the Banking (+0.2%) index, printed losses.
We expect bearish sentiments to remain predominant next week in the absence of any positive triggers to turn the tide for Nigerian equities.
Positive sentiments dominated the global equities market as appetite for risk assets strengthened following a slower-than-projected US inflation data which bolstered hopes of less aggressive interest rate hikes from the Federal Reserve.
Accordingly, US (DJIA: +4.0% and S&P 500: +4.9%) stocks rallied as signs of cooling inflation fueled interest in tech stocks. In the same vein, European equities (STOXX Europe: +4.1% and FTSE 100: +0.8%) were on track to close higher, supported by positive sentiments in US and China amid recession fears following weak UK GDP data.
Similarly, Asian markets (Nikkei 225: +3.9%; and SSE: +0.5%) posted gains, taking a cue from the Wall Street rally and a boost from Beijing’s zero-Covid policy easing signals.
Elsewhere, the Emerging (MSCI EM: +0.5%) market was buoyed by the gains in China (+0.5%), while the Frontier (MSCI FM: -0.6%) market declined following bearish sentiments in the Vietnamese (-4.3%) market.
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