SAT, 20 AUG, 2022-theGBJournal| The Nigerian Equity Market was not immune to the rout in global equities, as bearish sentiments persisted for the second consecutive week.
Accordingly, the All-Share Index and market capitalization shed 0.6% w/w to close at 49,370.62 points and N26.629 trillion respectively. Particularly, selloffs in bellwether stocks – OKOMUOIL (-10.0%), PRESCO (-10.0%), ACCESSCORP (-5.7%), and WAPCO (-10.0%), drove the weekly loss.
Consequently, the MTD loss increased to -2.0%, while the YTD gain moderated to +15.6%. Likewise, activity levels mirrored the overall market broad gauge, as trading volume and value declined by 45.5% w/w and 9.7% w/w, respectively.
Similarly, all other indices finished lower with the exception of The NGX Premium, NGX Banking, NGX-AFR Bank Value and NGX Industrial Goods Indices which appreciated by 0.12%, 0.65%, 0.07 and 0.28% while, The NGX ASeM and Growth indices closed flat.
Sectoral performance was mixed, as the Banking (+0.7%), Consumer Goods (+3.0%), and Industrial Goods (+0.3%) indices advanced, while the Insurance (-1.4%) and Oil and Gas (-0.9%) indices declined.
A total turnover of 823.005 million shares worth N12.228 billion in 17,482 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.511 billion shares valued at N13.547 billion that exchanged hands last week in 20,074 deals.
Trading in the top three equities namely FBN Holdings Plc, E-Tranzact International Plc and United Bank for Africa Plc (measured by volume) accounted for 323.474 million shares worth N2.520 billion in 1,457 deals, contributing 39.30% and 20.61% to the total equity turnover volume and value respectively.
We expect market performance to remain mixed in the coming week as investors rotate their portfolios towards stocks with attractive dividend yields, which could be matched by intermittent profit-taking activities. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.
Key highlights of market activities
| Indicators | Current | Change (%) | YTD |
| All-Share Index | 49,370.62 | -0.35 | +15.58 |
| Market Cap. (N ‘trillion) | 26.63 | -0.35 | +19.43 |
| Volume (millions) | 132.23 | -10.04 | |
| Value (N ‘billion) | 1.63 | -38.64 | |
Dividend Information for 2022
| CUSTODIAN | Dividend (Bonus) | Closure Date | Payment Date |
| SEPLAT | $0.025 (interim) | 15-Aug-22 | 09-Sep-22 |
| CUSTODIAN | N0.10 (interim) | 26-Aug-22 | 01-Sep-22 |
| OKOMU OIL | N7.00 (interim) | 26-Aug-22 | 29-Aug-22 |
| MTNN | N5.60 (interim) | 19-Aug-22 | 26-Aug-22 |
| BUAFOODS | N3.50 | 14-Jul-22 | 04-Aug-22 |
Meanwhile, Global stocks stumbled this week as investors weighed Federal Reserve policy signals on the likely pace of further interest-rate hikes.
The US (DJIA: -0.1% and S&P 500: -0.9%) stocks were poised for a weekly loss as rate hike worries fueled selloffs in Tech stocks. In the European equities market, the STOXX Europe:(-0.3%) gave up gains accumulated earlier in the week as a rise in German producer prices in July added to recession fears.
Conversely, the FTSE 100:(+0.8%) was poised for a weekly gain following a positive reaction to upbeat UK retail sales data amid continuing market caution over the inflationary outlook.
In Asia, the Japanese (Nikkei 225: +1.3%) posted a weekly gain as sentiments were buoyed by the Bank of Japan’s (BOJ) sustained stance on ultra-low interest rates. In comparison, the Chinese (SSE: -0.6%) settled lower, undermined by worries of a fragile economic recovery, Covid-19 lockdowns, and a housing slump.
Emerging (MSCI EM: -0.7%) market stocks declined marginally, primarily driven by the selloffs in China (-0.6%), while Frontier (MSCI FM: +0.4%) market stocks were buoyed by a positive performance in Vietnam (+0.4%).
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