…Negative sentiments dominated global equities
SAT, 06 AUG, 2022-theGBJournal| Despite the topsy-turvy performance, Nigerian equities ended the week on a positive note, as the All-Share index closed 0.28% stronger to settle at 50,722.33 points, the highest point since 25 July.
A total turnover of 705.636 million shares worth N12.850 billion in 22,124 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.546 billion shares valued at N16.289 billion that exchanged hands last week in 23,873 deals, NGX Exchange data shows.
Trading in the top three equities namely Guaranty Trust Holding Company Plc, Zenith Bank Plc and FBN Holdings Plc (measured by volume) accounted for 173.852 million shares worth N3.073 billion in 4,324 deals, contributing 24.64% and 23.91% to the total equity turnover volume and value respectively.
Gains in BUAFOODS (+7.28%), BUACEMENT (+0.94%), and GTCO (+0.49%) pushed the broader index into positive terrain. Having gained in two of five trading sessions this week, the ASI closed 0.70% higher w/w, ending two consecutive weekly losses.
Over the course of the week, strong performances across MTNN (+7.40% w/w), NESTLE (+2.99% w/w) and BUAFOODS (+7.28% w/w) were sufficient to offset the selloff in BUACEMENT (-15.15% w/w). Consequently, the year-to-date (YTD) return rose to 18.74%, while the market capitalization gained N195.36bn w/w to close at N27.36trn.
Analysis of today’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions increasing by 18.65%. A total of 148.81m shares valued at N1.93bn were exchanged in 4,091 deals. HONYFLOUR(+2.20%) led the volume chart with 22.02m units traded, while GTCO (+0.49%) led the value chart in deals worth N445.68m.
Market breadth closed positive at a 2.40-to-1 ratio with advancing issues outnumbering declining ones. ETERNA (+10.00%) led twenty-three (23) others on the leader’s table, while UNILEVER (-10.00%) topped nine (9) others on the laggard’s log.
Key highlights of market activities.
| Indicators | Current | Change (%) | YTD |
| All-Share Index | 50,722.33 | +0.28 | +18.74 |
| Market Cap. (N ‘trillion) | 27.36 | +0.30 | +22.70 |
| Volume (millions) | 148.81 | +14.08 | |
| Value (N ‘billion) | 1.93 | +18.65 |
Dividend Information for 2022
| Company | Dividend (Bonus) | Closure Date | Payment Date |
| BUAFOODS | N3.50 | 14-Jul-22 | 4-Aug-22 |
| AIRTELAFRI | $0.03 (final) | 23-Jun-22 | 22-Jul-22 |
| BUACEMENT | N2.60 | 15-Jul-22 | 21-Jul-22 |
| FBNH | N0.35 | 14-Jun-22 | 21-Jun-22 |
| NESTLE | N25.50 | 3-Jun-22 | 30-Jun-22 |
Meanwhile, negative sentiments dominated global equities as the better-than-expected US jobs report released on Friday fueled the likelihood of more aggressive interest rate hikes by the Federal Reserve.
Accordingly, US (DJIA: -0.7% and S&P 500: -0.1%) retreated from last week’s positive close, as investors traded cautiously in anticipation of further policy tightening from the Fed amid positive data showing an increase in US non-farm payrolls in July.
European equities posted mixed performances as the STOXX Europe (-0.4%) was weighed down by worries that central banks’ aggressive pace of rate hikes would slow global economic growth.
Conversely, the FTSE 100: (+0.2%) eked out a marginal gain supported by upbeat corporate earnings and a rally in banking stocks. Asian markets posted mixed performances – Japanese (Nikkei 225: +1.3%) stocks closed the week positively supported by upbeat corporate earnings, while the SSE (-0.8%) posted a weekly loss following tensions over US House Speaker Nancy Pelosi’s controversial visit to Taiwan.
The Emerging (MSCI EM: +0.1%) and Frontier (MSCI FM: +2.3%) markets recorded gains on the back of positive sentiments in South Korea (+1.6%) and Kuwait (+0.3%), respectively.
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