SAT, 16 JULY, 2022-theGBJournal| Closing the holiday-shortened week, Nigerian equities posted a strong rebound from the losses of the previous session, as the All-Share index gained 1.71% – the highest single-day gain since 27 May – to close at 52,215.12 points, the highest point since 16 June.
Meanwhile, a total turnover of 504.322 million shares worth N7.517 billion in 12,393 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 822.404 million shares valued at N10.366 billion that exchanged hands last week in 20,643 deals, according to NGX data.
Renewed investor interest in AIRTELAFRI (+10.00%), ZENITHBANK (+0.45%) and GTCO (+1.21%) pushed the market to positive terrain despite selloffs in DANGCEM (-3.64%), STANBIC (-5.94%) and UBA (-1.33%). Consequently, having gained in two (2) of three (3) trading sessions this week, the ASI closed 1.28% higher w/w – the biggest weekly gain since the week ended 27 May.
Trading in the top three equities namely Guaranty Trust Holding Company Plc, Caverton Offshore Support Grp Plc and United Bank For Africa Plc (measured by volume) accounted for 164.202 million shares worth N1.859 billion in 1,937 deals, contributing 32.56% and 24.73% to the total equity turnover volume and value respectively.
Over the course of the week, rebounds in FBNH (+2.83% w/w), GTCO (+2.70% w/w), INTBREW (+7.41% w/w) and a late rally in AIRTELAFRI (+10.00% w/w) were the primary drivers of the broader index’s strong performance. As a result, the ASI year-to-date (YTD) return rose to 22.24%, while the market capitalization gained N354.26bn w/w to close at N28.16tn.
Analysis of today’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions increasing by 242.43%. A total of 190.10m shares valued at N4.13bn were exchanged in 3,893 deals. CAVERTON (-0.72%) led the volume chart with 47.48m units while MTNN (+0.00%) led the value chart in deals worth N1.53bn.
Market breadth closed negative at a 1.16-to-1 ratio with declining issues outnumbering advancing ones. FIDSON (-9.95%) led eighteen (18) others on the laggard’s table, while WEMABANK (+10.00%) topped twenty-one (21) others on the gainer’s log.
key highlights of market activities.
| Indicators | Current | Change (%) | YTD (%) |
| All-Share Index | 52,215.12 | +1.71 | +22.24 |
| Market Cap. (₦ ‘trillion) | 28.16 | +1.71 | +26.28 |
| Volume (millions) | 190.10 | +64.71 | |
| Value (₦ ‘billion) | 4.13 | +242.43 |
Meanwhile, Risk-off sentiments reverberated across global equities as investors gauged the outlook for Federal Reserve interest-rate hikes and the resilience of China’s economy following the release of the latest US inflation data and readings on China’s economy.
Accordingly, US (DJIA; -2.3% and S&P 500; -2.8%) stocks were on track for a weekly loss as investors digested disappointing quarterly results from two big US banks and hotter-than-expected inflation data.
Likewise, European (STOXX Europe: -1.9% and FTSE 100: -1.6%) stocks were on course to close lower as investors continued to digest the latest US CPI print.
On the other hand, Asian markets posted mixed performances as the SSE (-3.8%) recorded huge losses following the lower-than-expected China GDP report, amid the mounting distress in China’s housing market.
Meanwhile, the Japanese (Nikkei 225; +1.0%) posted a weekly gain as the weakening in the yen against the greenback drove bargain hunting in export-oriented shares. Elsewhere, Emerging (MSCI EM: -3.4%) and Frontier (MSCI FM: -1.1%) markets mirrored the downbeat mood across global stocks consequent upon losses in China (-3.8%) and Kuwait (-0.5%), respectively.
Twitter-@theGBJournal| Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
