SAT, JUNE 10 2023-theGBJournal |In the last trading session of the week Friday, the NGX Exchange maintained the bearish trend as the All-Share Index declined by 0.05% but extended weekly gains by 0.20% (w/w) to close at 55,930.97 points while Market Capitalization appreciated by N30.455 trillion.
The month-to-date and year-to-date returns for the index settled at +0.3% and +9.2%, respectively.
All other indices finished higher with the exception of NGX Premium, NGX AFR Div. Yield, NGX Lotus II, NGX Industrial Goods, NGX Growth and NGX Sovereign Bond which depreciated by 0.75%, 0.06%, 0.08%, 1.31%, 0.51%, and 1.50% respectively while the NGX ASeM index closed flat.
Activity level was weaker than the prior week, as trading volume and value declined by 15.1% w/w and 1.4% w/w, respectively. From a sectoral standpoint, the Insurance (+13.9%) index recorded the most significant gain, followed by the Oil and Gas (+3.4%), Banking (+1.1%) and Consumer Goods (+0.1%) indices. On the flip side, the Industrial Goods (-1.3%) index declined.
Trading in the top three equities namely United Bank for Africa Plc, FCMB Group Plc and NPF Microfinance Bank Plc (measured by volume) accounted for 696.244 million shares worth N4.019 billion in 2,398 deals, contributing 31.70% and 8.74% to the total equity turnover volume and value respectively.
During the week, AIRTELAFRI (+1.79% w/w), MTNN (+0.04% w/w) and STANBIC (+2.27% w/w) led the market’s gains. On the flip side, ZENITHBANK (-2.10% w/w), GEREGU (-0.61% w/w) and GTCO (-1.23% w/w) contributed to the market’s losses.
Analysis of Friday’s market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 20.79%. A total of 574.74m shares valued at N6.09bn were exchanged in 6,595 deals. FCMB (+2.00%) led volume and value charts with 204.81m units traded in deals worth N941.96 million.
Fifty-two equities appreciated in price during the week lower than sixty-six equities in the previous week. Twenty-seven equities depreciated in price higher than twenty three in the previous week, while seventy-seven equities remained unchanged, higher than sixty-seven recorded in the previous week.
However, a total turnover of 2.196 billion shares worth N45.971 billion in 31,655 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.586 billion shares valued at N46.643 billion that exchanged hands last week in 35,122 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.578 billion shares valued at N15.652 billion traded in 14,851 deals for the week; thus contributing 71.82% and 34.05% to the total equity turnover volume and value respectively.
The Oil and Gas Industry followed with 157.221 million shares worth N1.304 billion in 3,549 deals. The third place was the Consumer Goods Industry, with a turnover of 101.562 million shares worth N1.939 billion in 3,944 deals.
Meanwhile, Global stocks posted mixed performances as investors’ focus shifted to monetary policy announcements due next week.
In line with this, US equities (DJIA: +0.2%; S&P 500: +0.3%) were on track to close higher as weak employment data boosted expectations of a more dovish stance by the Federal Reserve next week. On the other hand, expectations that the European Central Bank will continue to tighten its monetary policy weighed on European equities (STOXX Europe: -0.3; FTSE 100: -0.1%).
Elsewhere, Asian markets posted mixed performances as the Japanese Nikkei 225 (+2.4%) jumped in response to the gains on Wall Street amid expectations of a pause in rate hikes.
The Chinese market (SSE: -0.1%) declined as weak inflation data fueled concerns over the Chinese economic recovery.
The Emerging (MSCI EM: +1.0%) and Frontier (MSCI FM: +0.9%) market indices closed higher following gains in Taiwan (+1.1%) and Vietnam (+0.9%), respectively.
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