SAT, JUNE 24 2023-theGBJournal |The NGX All-Share Index and Market Capitalization appreciated by 0.34% to close the week at 59,206.63 and N32.237 trillion respectively.
All other indices finished higher with the exception of NGX Lotus II which depreciated by 1.26% while the NGX ASeM index closed flat.
The month-to-date and year-to-date returns for the index increased to +6.2% and +15.5%, respectively.
Bargain hunting in BUACEMENT (+4.7%), DANGCEM (+1.2%), and FBNH (+9.5%) drove the market performance.
A total turnover of 3.369 billion shares worth N41.986 billion in 39,764 deals was traded this
by investors during the week in contrast to a total of 4.276 billion shares valued at N62.176 billion that exchanged hands last week in 44,344 deals.
Trading in the top three equities namely Universal Insurance Plc, United Bank for Africa Plc
and Guaranty Trust Holding Company Plc (measured by volume) accounted for 865.658 million shares worth N12.138 billion in 4,786 deals, contributing 25.70% and 28.91% to the total equity turnover volume and value respectively.
Meanwhile, sectoral performance was broadly positive as the Insurance (+3.2%), Oil and Gas (+3.1%), Industrial Goods (+2.6%), Banking (+1.1%), and Consumer Goods (+0.2%) indices advanced.
In the week ahead, we expect investors to continue to hunt bargains in search of alpha, amid early positioning ahead of the HY earnings season.
However, we do not rule out the possibility of profit-taking activities. As a result, we think the local bourse will likely exhibit a choppy pattern.
Meanwhile, negative sentiments resurfaced in the global equities market as hawkish moves by central banks heightened fears of a recession.
Accordingly, US equities (DJIA: -1.0%; S&P 500: -0.6%) were on course for a weekly loss as the Federal Reserve Chairman’s hawkish interest-rate outlook in his two-day congressional testimony dampened sentiments.
Similarly, European equities (STOXX Europe: -2.6; FTSE 100: -1.8%) were on track to close lower as a hotter-than-expected inflation report in the UK and rate hike announcement from the Bank of England (BoE) weighed on sentiments.
In like manner, Asian markets – Nikkei 225:(-2.7%) and SSE: (-2.3%) – declined as growth concerns and interest rate hikes by central banks sapped appetite for risk assets.
Finally, the Emerging (MSCI EM: -2.8%) and Frontier (MSCI FM: -0.1%) market indices declined following losses in China (-2.3%) and Iceland (-0.8%), respectively.
Twitter-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com| govandbusinessj@gmail.com
