SAT, 21 MAY, 2022-theGBJournal | The bears dictated proceedings in the local bourse as investors booked profits on bellwether stocks. Precisely, the All-Share Index shed 0.2% to close at 52,979.96 points. Particularly, profit-taking activities witnessed in the shares of FLOURMILL (-10.7%), WAPCO (-8.3%), INTBREW (-6.8%), and MTNN (-4.8%) led the weekly loss.
Consequently, the MTD and YTD returns for the index moderated to +6.7% and +24.0%, respectively. Elsewhere, activity levels were upbeat, as trading volume and value increased by 66.4% w/w and 16.9% w/w, respectively. Sectoral performance was mixed as the Insurance (+3.6%) and Oil and Gas (+0.3%) indices advanced, while the Banking (-1.2%), Consumer Goods (-1.0%) and Industrial Goods (-0.6%) indices declined.
A total turnover of 3.021 billion shares worth N31.784 billion in 29,153 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.816 billion shares valued at N27.194 billion that exchanged hands last week in 36,286 deals, according to NGX Exchange data.
Trading in the top three equities namely FCMB Group Plc, Jaiz Bank Plc and Transnational Corporation Plc (measured by volume) accounted for 1.698 billion shares worth N4.095 billion in 2,188 deals, contributing 56.21% and 12.88% to the total equity turnover volume and value respectively.
The Financial Services Industry (measured by volume) led the activity chart with 2.244 billion shares valued at N12.399 billion traded in 10,817 deals; thus contributing 74.30% and 39.01% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 345.806 million shares worth N558.873 million in 1,676 deals. The third place was The Consumer Goods Industry, with a turnover of 149.009 million shares worth N2.750 billion in 5,632 deals
In the week ahead, we believe investors will be focused on the outcome of the MPC meeting scheduled to hold next week to gain further clarity on the movement of yields in the FI market. As a result, we envisage cautious buying actions from investors interested in cyclical stocks with attractive dividend yields. Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.
Meanwhile, Global stocks posted mixed performances as sentiments were shaped by a slew of disappointing earnings results in the US, monetary policy easing in China, and mounting concerns over a potential global recession as key central banks tighten monetary policy.
Accordingly, US (DJIA: -2.9%; S&P 500: -3.1%) stocks were on track to close the week in the red as weaker-than-expected results from U.S. retailers, ignited fears over the impact of elevated inflation on corporate earnings.
European stock markets (STOXX Europe: -0.1%; and FTSE 100: -0.1%) were on track for a negative close as inflation concerns dented sentiments. Asian markets were broadly positive, as the Nikkei 225 (+1.2%) was lifted by bargain hunting activities in stocks considered to be cheap.
Similarly, the SSE (+2.0%) closed higher as sentiments were buoyed by the People’s Bank of China’s move to lower the five-year loan prime rate (LPR) by 0.15%. The Emerging (MSCI EM: +1.0%) and Frontier (MSCI FM: +0.1%) markets stocks inched higher following bullish sentiments in China (+2.0%) and Vietnam (+4.9%), respectively.
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