- All-Share Index declined by 0.5% w/w
Trading in the top three equities namely Ecobank Transnational Incorporated Plc, Access Holdings Plc and United Bank for Africa Plc (measured by volume) accounted for 1.006 billion shares worth N20.115 billion in 6,849 deals, contributing 50.67 percent and 49.40 percent to the total equity turnover volume and value respectively.
Although the market started the week on a positive note, negative sentiments resurfaced later in the week as investors reacted to the MPC’s decision to further hike the MPR by 150bps. Notably, the banks bore the brunt of the selloffs following declines in UBA (-12.1%), FBNH (-10.9%), ZENITHBANK (-8.5%) and GTCO (-6.5%).
As a result, the All-Share Index declined by 0.5 percent week-on-week to close at 97,612.51 points. Accordingly, the Month-to-Date and Year-to-Date returns settled at -0.6 percent and +30.5 percent, respectively.
On activity levels, the trading volume increased by 20.2 percent w/w, while the trading value decreased by 4.6 percent w/w.
A total turnover of 1.986 billion shares worth N40.715 billion in 38,487 deals was traded in the review week by investors on the floor of the Exchange, in contrast to a total of 1.652 billion shares valued at N42.677 billion that exchanged hands in the preceding week in 38,123 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.577 billion shares valued at N30.359 billion traded in 20,697 deals; thus contributing 79.41 percent and 74.56 percent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 125.342 million shares worth N1.387 billion in 2,283 deals. The third place was the Consumer Goods Industry, with a turnover of 77.327 million shares worth N2.446 billion in 4,916 deals.
Sectoral performance was mixed, with losses in the Banking (-7.3%) and Insurance (-3.5%) indices, while the Oil & Gas (+0.7%), Consumer Goods (+0.3%), and Industrial Goods (+0.2%) indices recorded gains.
Similarly, all other indices finished lower with the exception NGX MERI Value, NGX Consumer Goods, NGX Oil and Gas, NGX Lotus ll and NGX Industrial Goods which appreciated by 1.74 percent, 0.31 percent, 0.72 percent, 0.44 percent and 0.19 percent while the NGX ASeM index closed flat.
Twenty-four (24) equities appreciated in price during the week lower than twenty-eight (28) equities in the previous week. Fifty-three (53) equities depreciated in price higher than fifty-one (51) in the previous week, while seventy-seven (77) equities remained unchanged, higher than seventy-six (76) recorded in the previous week.
In the Exchange Traded Product segment, a total of 5,340 units valued at N2.350 million were traded in the review week in 111 deals compared with a total of 4,103 units valued at N2.429 million transacted in the preceding week in 110 deals.
Also in the Bond market, investors traded a total of 82,778 units valued at N80.570 million were traded in the review week in 18 deals compared with a total of 9,282 units valued at N8.945 million transacted the previous week in 24 deals.
On the global scene, meanwhile, sentiments in the global equities market turned bearish this week due to uncertainties about major central banks’ interest rate paths.
As a result, US equities (DJIA: -2.3%; S&P 500: -0.7%) are poised to close lower as hawkish comments from Federal Reserve officials and stronger-than-expected S&P manufacturing and services PMI data reinforced a “higher-for-longer” narrative. European equities (STOXX Europe: -1.0%; FTSE 100: -1.6%) traded with negative sentiments as hotter-than-expected UK inflation data and US interest rate outlook reduced bets on rate cuts from the Bank of England (BoE) and the European Central Bank (ECB).
Asian markets were bearish (Nikkei 225: -0.4%; SSE: -2.1%) following losses in tech stocks and declines on Wall Street due to receding prospects for interest rate cuts by the Federal Reserve. The Emerging Markets index (MSCI EM: -0.8%) mirrored the bearish mood across global stocks, driven by losses in China (-2.1%). Conversely, the Frontier Markets index (MSCI FM: +0.2%) recorded a marginal gain, driven by positive sentiments in Romania (+0.4%).
Given the outcome of the MPC meeting, stock market analysts believe the hawkish tone will continue to intensify risk-off sentiments in the domestic bourse, thus, we anticipate cautious trading in the near term.