Banking sector led others to equity market five-star week



Global Stocks sees sell-off, amidst increase in capital gain tax

This week, sell interest dominated in eleven (11) of the fourteen (14) stock markets under our coverage, on the report of a possible U.S Capital Gain Tax hike to near 40% for the wealthy investors earning $1 million or more.

As a result, all of the three broadest market indices in the U.S, which includes the DJIA Index, the S&P 500, and the Nasdaq Composite Index declined by 0.46% w/w, 0.13% w/w, and 0.25% w/w respectively, as the Federal Reserve meets next week.

Global market 23.04.2021 1

Similarly, the major market around Europe, UK FTSE 100, German DAX, and France CAC 40 all lost 1.15% w/w, 1.17% w/w, and 0.46% w/w respectively, despite the European Central Bank (ECB) maintaining its ultra-easy monetary policy in the recent meeting.

However, mixed sentiment prevailed across the major market in Asia, as Hong-Kong HANG SENG Index and China Shanghai Composite Index gained 0.38%w/w and 1.39%w/w respectively, while the Japan Nikkei 225, and India S&P BSE lost 2.23%w/w and 1.95%w/w respectively, amid reports of a resurgence of Covid-19 cases in the region.

Furthermore, three of the four emerging market indices under our coverage, Brazil’s BOVESPA, Argentina MERVAL Index, and South-Africa FTSE/JSE Index all lost 0.48%w/w,  0.61%w/w  and 2.04%w/w  respectively, save Egypt EGX 30 that gained 4.50%w/w.

We expect to see some mixed recovery in the next trading week in reaction to the report of a possible U.S Capital Gain Tax hike and the upcoming Federal Reserve Meeting.


Banking sector led others to equity market five-star week

The Nigerian equity market witnessed a five-star week by gaining 1.27%w/w, amidst Q1’2021 earnings reports and recently low price of many fundamental stocks.

As a result, the Market Indicators (NSE-ASI and NSE Market Capitalization) increased by 1.27% w/w to close for this week at 39,301.82 absolute points and N20.57 trillion compared to 38,808.01 absolute points and N20.31 trillion last Friday. This nominally translates to a week-on-week gain of N26 billion in Market Capitalization value.

All of the five major sectors closed positively, led by the Banking Sector (+4.82%), Consumer Goods Sector (+1.05%), Industrial Sector (+0.50%), Insurance Sector (+0.40%), and Oil and as Sector (+0.29%).

Gainers 24042021

PZ emerged best performing stock this week with a w/w gain of   +21.11%, while FTNCOCOA shed -22.00% to emerge as the top loser.

A total turnover of 1.60 billion shares worth N42.14 billion in 19,507 deals was traded this week by investors on the floor of the Nigerian Stock Exchange as against a total of 1.26 billion shares worth N10.76 billion in 19,975 deals.

Losers 24042021

Thirty-nine (39) equities appreciated in price during the week, higher than Eighteen (18) equities in the previous week. Twenty-four (24) equities depreciated in price lower than Forty-seven (47) equities in the previous week, while ninety-nine (99) equities remained unchanged, higher than ninety-seven (97) equities recorded in the previous week.

The anticipated positive performance of many banking and consumer goods sectors in Q1’2021 is expected to continue to drive long-term investors to the market, but the rising fixed-income yields are still on the negative side of the stock market.


The Naira this week remained unchanged against the USD at the official window to close the week at ₦379/USD as against the previous week, while at the I&E FX windows, the USD closed the week at ₦410.00/USD unchanged from last Friday position.
In the meantime, the foreign reserves this week declined by $103million from the level of $35.23 billion (15/04/2021) to $35.12 billion (22/04/2021), as the Brent Crude oil price also dropped $0.05pbl w/w from $66.16pbl last Friday to $66.11pbl.

Source: GTI Research


GTI is a leading Nigerian Investment Banking group with proven expertise in Financial advisory, Securities Dealing (Fixed Income and Equities), Asset management and Deal Origination. We have strong capacity in financial service delivery.

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