Gains in bellwether stocks halt equity market 7-weeks negative trend

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GLOBAL MARKET

Global Stocks rallies lately on strong recovery hopes

This week, selling sentiment dominated in eight (8) of the fourteen (14) stock markets under our coverage, owing to rising bond yields on expectations that the economy may stage a more potent recovery and be on the receiving end of higher inflation in the wake of the $1.9 trillion fiscal stimulus package from President Biden administration, and panic about the global economic recovery from the coronavirus pandemic, which has obstructed the business reopening plans in some part of Europe.

pic 1 Consequently, two of the three broadest market indices in U.S the DJIA Index and S&P 500, closed the week higher by 1.36% and 1.57% respectively, while Nasdaq Composite Index recede 0.58% w/w.

Similarly, two major stocks in the European market, Germany DAX and UK FTSE 100 grew by 0.88% w/w and 0.48% w/w respectively, as the France CAC 40 dropped 0.15% w/w.

Also, sell-down prevailed in three of the four Asian markets under our coverage as Japan Nikkei 225, Honk-Kong HANG SENG, and India S&P BSE shed 2.07%w/w, 2.26%w/w, and 1.70%w/w respectively, while China Shanghai Composite grew by 0.40%w/w.

Across other Emerging markets, Egypt EGX 30, Brazil Bovespa, and Argentina Merval declined by 0.44%w/w, 1.24%w/w and 5.18%w/w respectively; save for South-Africa FTSE/JSE that gained 1.44%w/w

We expect a modest recovery in the advanced economy as the market begin to feel the impact of the US stimulus package and low priced tech shares.

 

EQUITY MARKET

Gains in bellwether stocks halt equity market 7-weeks negative trend

Transactions on the Nigerian Stock Market grew by 2.17%w/w after seven weeks of decline. The growth was largely impacted by positive sentiment in many bellwether stocks. Consequently, the NSE-ASI and NSE Market Capitalization increased by 2.17 % w/w to close for this week at 39,216.20 absolute points and N20.52 trillion compared to 38,382.39 absolute points and N20.08 trillion last Friday. This nominally translates to a week-on-week gain of N436.25 billion in Market Capitalization value.

All of the five major stocks closed positively led by the Industrial sector (+2.94%), Consumer goods sector (+1.41%), Insurance sector (+0.94%), Oil and Gas (+0.74%) and Banking sector (+0.21%) w/w increase.

pic 2STANBIC emerged best performing stock this week with 30.00%w/w gain, while LIVESTOCK shed -15.46%w/w to emerge as the top loser.

A total turnover of 1.53 billion shares worth N21.31 billion in 20,016 deals was traded this week by investors on the floor of the Nigerian Stock Exchange as against a total of 2.34 billion shares worth N19.27 billion in 20,173 deals traded last week.

pic 3Forty-eight (48) equities appreciated in price during the week, higher than thirty-three (33) equities in the previous week. Eighteen (18) equities depreciated in price, lower than twenty-five (25) in the previous week, while ninety-six (96) remained unchanged, lower than one hundred and four (104) equities recorded in the previous week.

 

Market Outlook: Week ending April 1, 2021

We expect the seesaw sentiment of investors to continue till in the next trading week as some investors may begin to take profit from the recently appreciated stocks.

FOREIGN EXCHANGE MARKET

The Naira this week remain unchanged against the USD at  both the official and I&E window to close the week at ₦379/USD  and ₦410.00/USD respectively, as against the previous week,

In the meantime, the foreign reserves this week grew by $140million from the level of $34.46 billion (19/03/2021) to $34.60 billion (23/03/2021). Crude oil price also gains $0.14pbl w/w from $64.35pbl last Friday to $64.59pbl.

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