Nigerian stocks log one of worst weeks of the year with NGX All-Share closing down 1.58% w/w

SAT. 18 MARCH 2023-theGBJournal | In the last trading session of the week, the Nigerian equities traded with mixed sentiments as the All-Share Index closed flat at 54,915.39 points.

According to NGX Exchange data,  total turnover of 853.745 million shares worth N11.841 billion in 18,543 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.023 billion shares valued at N20.221 billion that exchanged hands last week in 18,650 deals.

Trading in the top three equities namely Transnational Corporation Plc, Zenith Bank Plc and Sterling Bank Plc. (measured by volume) accounted for 226.004 million shares worth N2.041 billion in 2,613 deals, contributing 26.47% and 17.24% to the total equity turnover volume and value respectively

Investors interests in ZENITHBANK (+0.61%), WAPCO (+0.40%), and UBA (+0.63%) were offset by selloffs in GTCO (-0.40%), STANBIC (-0.13%) and ACCESSCORP (-2.33%). Having lost in all trading sessions this week, the ASI closed 1.58% lower w/w, eroding gains of the past week.

Over the course of the week, MTNN (-4.95% w/w), ZENITHBANK (-4.65% w/w), GTCO (-7.17% w/w) and WAPCO (-4.92% w/w) were the major drags on the broader index offsetting gains in BUAFOODS (+4.21% w/w), UNILEVER (+3.70% w/w), STERLNBANK (0.67% w./w) and PZ CUSSONS(+0.47% w/w). As a result, the year-to-date (YTD) return fell to 7.15%, while the market capitalization shed N478.91bn w/w to close at N29.92trn.

Analysis of today’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 3.65%. A total of 156.97m shares valued at N1.56bn were exchanged in 2,952 deals. UBA (+0.63%) led the volume chart with 17.91m units traded, while ZENITHBANK (+0.61%) led the value chart in deals worth N232.64m.

Market breadth closed positive at a 1.57-to-1 ratio with advancing issues outnumbering declining ones. UCAP (+9.91%) topped ten others on the leader’s log, while CHAMS (-4.00%) led six others on the laggard’s table.

Meanwhile, global equities were largely weak this week, as worries of bank failures in the US and turmoil at Credit Suisse combined to drive key indices lower, even as, sentiments appeared to receive a slight boost later in the week after authorities in the US and Switzerland pledged to stem the crisis in the banking system with liquidity injection plans.

In line with this, US equities (DJIA: +1.1%; S&P 500: +2.6%) rebounded as a rescue package by large US banks which pledged to deposit USD30.00 billion at First Republic Bank, to pre-empt the liquidity crisis, eased selling pressures.

Again, sentiments across European equities (STOXX Europe: -2.7%; FTSE 100: -4.4%) remained sour, following a plunge in the shares of Credit Suisse amid fears of another bank failure.

In Asia, Japanese equities (Nikkei 225: -2.9%) declined as turmoil around Credit Suisse heightened fears of a banking crisis in the region.

Conversely, Chinese equities (SSE: +0.6%) traded higher tracking the rally on Wall Street. Conclusively, the Emerging (MSCI EM: -1.5%) and Frontier (MSCI FM: -1.8%) market indices declined following losses in Vietnam (-0.7%), and Taiwan (-0.5%), respectively.

Key Market Highlights

Dividend Information for 2023

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