SAT, JULY 08 2023-theGBJournal | The Nigerian stock market deepened its move into the green territory this week, following bargain hunting in DANGCEM (+5.3%), STANBIC (+17.9%), and FBNH (+19.1%) stocks.
Thus, The NGX All-Share Index and Market Capitalization appreciated by 3.40% to close the week at 63,040.41 and N34.326 trillion respectively, pushing the YTD return to +23.0%.
Similarly, all other indices finished higher with the exception of NGX Consumer Goods Index which depreciated by 0.22% while the NGX ASeM and NGX Sovereign Bond Indices closed flat.
A total turnover of 9.831 billion shares worth N145.408 billion in 54,478 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 3.369 billion shares valued at N41.986 billion that exchanged hands last week in 39,764 deals, according to the NGX data.
Trading in the top three equities namely FBNH Holding Plc, FCMB Group Plc and United Bank for Africa (measured by volume) accounted for 6.071 billion shares worth N102.488 billion in 7,505 deals, contributing 61.75% and 70.48% to the total equity turnover volume and value respectively.
Likewise, activity levels mirrored the market’s broad gauge as trading volume and value surged by 324.7% w/w and 250.0% w/w, respectively, with FBNH accounting for about 48.6% and 61.5% of the total trading volume and value.
From a sectoral standpoint, the Banking (+9.8%), Oil and Gas (+7.2%), Industrial Goods (+2.2%), and Insurance (+0.7%) indices closed in the green while the Consumer Goods (-0.2%) index declined.
Seventy-eight equities appreciated in price during the week higher than seventy-seven equities in the previous week. Twenty-five equities depreciated in price lower than fifty-nine in the previous week, while Fifty-three equities remained unchanged, higher than twenty recorded in the previous week.
With the half-year earnings season on the horizon, we believe investors will look for clues on the sustainability of the decent corporate earnings released for Q1-23.
However, we expect mixed market performance in the week ahead as bargain hunting in dividend-paying stocks will be matched by intermittent profit-taking activities.
Meanwhile, global equities are set for a negative close this week as a stronger-than-expected US ADP private payrolls report drove bond yields higher and boosted the odds of further Federal Reserve rate hikes.
Thus, US equities (DJIA: -1.4%; S&P 500: -0.9%) recorded sharp sell-offs as the resilient labour market reinforced fears of interest rate increases.
In like manner, European equities (STOXX Europe: -3.3%; FTSE 100: -3.2%) were on track for a weekly loss as signs of an economic slowdown added to fears of rising interest rates.
Japanese equities (Nikkei 225: -2.0%) also declined following the negative lead from Wall Street, where robust jobs data shook expectations of ending interest rate hikes.
Chinese equities (SSE: +0.3%) gained marginally on hopes that US-China relations will help ease geopolitical tensions and tech rivalry.
Finally, the Emerging (MSCI EM: -0.5%) market index slipped due to selloffs in South Korea (-1.5%), while the Frontier (MSCI FM: +0.5%) market index closed higher following gains in Vietnam (+0.7%).
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