SAT 23 OCT, 2021-theGBJournal- A total turnover of 1.565 billion shares worth N18.384 billion in 21,621 deals were traded this week by investors on the floor of the NGX Exchange, in contrast to a total of 2.838 billion shares valued at N31.653 billion that exchanged hands last week in 23,355 deals, according to NGX data.
The All-Share Index notched a 0.8% gain to close at 41,763.26 points. As a result, the MTD and YTD return increased to +3.8% and +3.7%, respectively. Specifically, bargain-hunting activities in NB (+7.4%), BUACEMENT (+6.7%), TOTAL (+6.2%), and STANBIC (+5.1%) drove the weekly gain.
All other indices finished lower with the exception of NGX Main Board, NGX 30, NGX Banking, NGX Oil/Gas, NGX Industrial Goods and NGX Sovereign Bond indices which appreciated by 1.64%, 0.80%, 0.69%, 1.40%, 2.59% and 0.03% respectively, while the NGX ASeM Index closed flat.
Trading in the top three equities namely FBN Holdings Plc, E-Tranzact International Plc and Access Bank Plc (measured by volume) accounted for 626.888 million shares worth N6.303 billion in 3,677 deals, contributing 40.07% and 34.29% to the total equity turnover volume and value respectively.
In the week ahead, we expect NGX’s floor to be flooded with results as the Q3-2021 earnings season commences in full swing.
‘’We believe investors will be focused on gauging the extent to which recovery in economic activities has supported corporate earnings,’’ says Cordros Research analysts.
Cordros said the local bourse is likely to close positive as we expect decent earnings releases across board to temper selling activities. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.
At the global markets, stocks posted broadly positive performances as China Evergrande Group dodged a default with last-minute bond payment, thus lifting investors sentiments at the end of a week dominated by corporate earnings reports and inflation concerns.
Accordingly, US (DJIA; +0.9% and S&P; +1.8%) rallied as better than expected third-quarter corporate earnings helped counter worries stemming from rising inflation expectations. In Europe, the STOXX Europe (+0.3%) was set to close in green as a surprise interest payment by China’s Evergrande buoyed sentiments.
Elsewhere, the FTSE 100 (-0.4%) negative performance was driven by disappointing earnings earlier in the week, even as investors fretted about prospects of rate-hike from the Bank of England (BOE). Asian markets posted mixed performances, as the Nikkei 225: (-0.9%) declined following a rout in tech stocks. Conversely, the SSE (+0.3%) gained marginally after the banking industry regulator pledged to support first-time homebuyers with more accessible mortgage financing.
Emerging (MSCI EM: +0.7%) market stocks closed higher consequent upon gains in China (+0.3%), while Frontier (MSCI FM: -0.2%) market stocks declined following selloffs in Vietnamese (-0.4%) markets.
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