FRI, DEC 01 2023-theGBJournal|Nigerian equities market ended Friday’s session 0.08% stronger, bringing the All-Share Index to settle at 71,419.87 points.
The market saw an uptick during the week, driven by bargain hunting in SEPLAT (+10.0%) and NESTLE (+9.5%). Consequently, the All-share Index advanced by 0.3% w/w to close at +39.4% YTD.
Trading activity was positive, as the total traded volume and value increased by 4.9% w/w and 70.5% w/w respectively.
Elsewhere, sectoral performance was mixed, following gains in the Banking (+1.9%) and Oil and Gas (+6.0%) indices and losses in the Insurance (-2.0%), Industrial Goods (-1.2%) and Consumer Goods (-0.5%) indices.
Given the lack of notable positive catalysts to stimulate sentiments, we expect cautious trading to persist in the domestic bourse next week. Nonetheless, we reiterate the need for investors to seek positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.
Meanwhile, Global equities posed mixed performances this week, with positive sentiments buoyed by a decline in US PCE and eurozone inflation, reinforcing hopes of earlier rate cuts by the Federal Reserve and European Central Bank in 2024.
However, in Asian markets, a blend of economic signals tempered optimism. At the time of writing, US equities (DJIA: +1.6%; S&P 500: +0.2%) appeared set for a positive week, as indications of moderating inflation and sustained economic resilience fostered optimism about a more accommodative Federal Reserve.
European equities (STOXX Europe: +0.4%; FTSE 100: -0.5%) traded with mixed sentiments influenced by (1) cooler-than-expected Eurozone inflation data, (2) sell pressures on China-exposed stocks due to worries of slowing growth in China, and (3) hawkish comments from the Bank of England Governor.
In contrast, Asian markets (Nikkei 225: -0.6%; SSE: -0.3%) were largely bearish, following negative reactions to sluggish manufacturing PMI data amid China’s ongoing trend of foreign fund outflows. In other regions, Emerging (MSCI EM: +0.7%) and Frontier (MSCI FM: +0.1%) markets closed higher, driven by gains in Taiwan (+0.9%) and Vietnam (+0.2%), respectively.
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