NGX All-Share Index extends weekly losses, down 0.44% w/w after heavy sell-offs in Tier-1 banking stocks

SAT, 17 SEPT, 2022-theGBJournal| In the last trading session of the week, the domestic bourse succumbed to sell pressure as the All-Share Index declined by 0.13% to close at 49,475.42 points the lowest since 22 August.

Bearish sentiments in Tier-1 banking names, FBNH (-1.48%), STANBIC (-1.67%), ACCESSCORP (-5.14%) and UBA (-4.70%) were the sole drivers of the market plunge.

However, having lost in four of five trading sessions this week, the ASI closed 0.44% lower w/w, extending losses for the second consecutive week.

Over the course of the week, ZENITHBANK (-1.50% w/w), FBNH (-5.66% w/w) and STANBIC (-1.67% w/w) were the major drivers of the week’s loss. In addition, losses in ACCESSCORP (-6.21% w/w) following the Q2 results released contributed to the overall market decline.

Consequently, the year-to-date (YTD) return dipped to 15.82%, while the market capitalization shed N118.50bn w/w to close at N26.69trn.

A total turnover of 719.398 million shares worth N8.004 billion in 17,444 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 949.819 million shares valued at N9.329 billion that exchanged hands last week in 18,525 deals, according to NGX Exchange data.

Analysis of Friday’s market activities showed trade turnover settled lower relative to the previous session, with the value of transactions decreasing by 9.04%. A total of 107.49m shares valued at N1.15bn were exchanged in 3,303 deals. FBNH (-1.48%) led the volume chart with 12.02m units traded while ZENITHBANK (+0.51%) led the value chart in deals worth N235.91m.

Overall, trading in the top three equities namely Courteville Business Solutions Plc, Zenith Bank Plc and Access Holdings Plc (measured by volume) accounted for 278.293 million shares worth N1.984 billion in 3,038 deals, contributing 38.68% and 24.78% to the total equity turnover volume and value respectively in the week.

The Financial Services Industry (measured by volume) led the activity chart with 411.407 million shares valued at N3.943 billion traded in 9,471 deals; thus contributing 57.19% and 49.26% to the total equity turnover volume and value respectively. The ICT Industry followed with 177.815 million shares worth N955.781 million in 1,573 deals. The third place was the Conglomerates Industry, with a turnover of 36.577 million shares worth N2.332 billion in 2,425 deals.

Meanwhile, Global stocks plummeted this week, as jitters in Wall Street over a slowdown in global demand reverberated across the major markets. At the same time, investors remain worried about the effects of aggressive rate hikes on the global economy and in turn, earnings growth.

Accordingly, US (DJIA: -3.7% and S&P 500: -4.1%) stocks were set for another weekly loss. Likewise, European (STOXX 600: -1.3% and FTSE 100: -0.9%) stocks were also on course for a negative close, with further pressures stemming from a fall in UK retail sales (-1.6% m/m vs July: +0.4% m/m).

Elsewhere, Asian markets (Nikkei 225: -2.3%; SSE -4.0%) posted negative performance following the rout on Wall Street and investors’ reaction to the People’s Bank of China pausing its monetary easing measures.

In the same vein, the Emerging (MSCI EM: -1.2%) and Frontier (MSCI FM: -1.2%) markets mirrored the bearish trend across global stocks consequent upon the losses in China (-4.1%) and Vietnam (-0.8%), respectively.

NGX market activities.

Dividend Information for 2022

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