SAT, JAN 06 2024-theGBJournal| The Nigerian equities market benchmark index surged, and broke through the 79,000 points mark to record a substantial 6.5% w/w gain to closing at 79,664.66 points, with gains recorded on all trading sessions this week.
Similarly, all other indices finished higher with the exception of NGX Growth and NGX Sovereign Bond Indices which depreciated by 6.38% and 1.21% respectively, while the NGX ASeM index closed flat.
Accordingly, Notably, bargain hunting in blue-chip telecommunication stocks – MTNN (+8.0%) and AIRTELAFRI (+6.0%) – underpinned the market’s performance.
Activity levels mirrored the market’s broad gauge, as the total traded volume increased significantly by 139.2% w/w while the total traded value registered a 15.9% w/w increase.
Sectoral performance was positive as gains in the Insurance (+14.1%), Banking (+10.3%), Consumer Goods (+4.4%), Industrial Goods (+3.6%), and Oil and Gas (+3.0%) indices reflected the overall market performance.
Eighty-eight equities appreciated in price during the week higher than sixty-five equities in the previous week.
Seventeen equities depreciated in price lower than twenty-four in the previous week, while fifty equities remained unchanged, lower than sixty-six recorded in the previous week.
In the near term, we believe positioning for 2023FY earnings releases and accompanying dividends declarations will continue to support buying activities on the local bourse even as institutional investors continue to search for clues on the direction of yields in the FI market.
After a sluggish start to the holiday-shortened week, global stocks are poised for a weekly loss as investors assessed various economic reports – including initial jobless claims and non-farm payrolls – which indicated lingering resilience in the labor market that may impact how policymakers approach potential interest rate reductions this year.
Correspondingly, US equities (DJIA: -0.4%; S&P 500: -0.2%) started the year with a lackluster performance, grappling with concerns over potential rate cuts by the Federal Reserve.
At the same time, European equities (STOXX Europe: -0.3%; FTSE 100: -0.1%) were poised for their first weekly loss, as investors reacted negatively to a hotter-than-expected euro-zone inflation data amid rising bond yields.
Equally, Asian markets (Nikkei 225: -0.3%; SSE: -1.7%) finished lower in response to mixed manufacturing reports from China and longer-than-expected policy tightening in the US.
Lastly, the Emerging (MSCI EM: -1.9%) market declined, undermined by selloffs in China (-1.6%), while the Frontier (MSCI FM: +0.7%) market closed higher, supported by Vietnam’s (+1.9%) bullish performance.
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