Despite three days gain, equity market shrunk 0.13% w/w

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GLOBAL MARKET

Mixed Sentiment Prevailed on Global Shares to Begin Q2’21

This week, buying interest dominated in eight (8) of the fourteen (14) stock markets under our coverage despite the hiccups in the effectiveness of Covid-19 vaccine and rising bond yields.

Consequently, all of the three broadest market indices in U.S the DJIA Index, S&P 500 and Nasdaq Composite Index all grew by 1.95% w/w, 2.71% w/w and 3.12% w/w respectively, amid fear of spike in inflation could force the Federal Reserve to raise inflation rates sooner.

Global 1Similarly, the major market around Europe France CAC 40, UK FTSE 100 and German DAX gained 1.09% w/w, 2.65% w/w, and 0.84% w/w respectively.

However, major Asian market indices, the Japan Nikkei 225, Honk-Kong HANG SENG, China Shanghai Composite Index and India S&P BSE declined by 0.29%w/w, 0.83%w/w, 0.97% and 0.88%w/w respectively.

Mixed sentiment reigned across the emerging markets under our coverage, Brazil’s BOVESPA and Argentina’s MERVAL Index gained 2.10%w/w and 1.80%w/w respectively, while the Egypt EGX 30 and South-Africa FTSE/JSE Index that lost 2.47%w/w and 0.07%w/w respectively.

We expect to see some further positive reaction from investors in the next trading week in reaction to U.S infrastructural plan amidst Covid-19 vaccination and concerns about the continued rise in inflation.

EQUITY MARKET

Despite three days gain, equity market shrunk 0.13%w/w

Transactions on the Nigerian Equity Market closed w/w on a negative note despite the market recorded gains in three out of the four trading sessions in the week. The decline was a result of the significant dip of 0.39% on the early day of the week.

gainers 1Consequently, the Market Indicators (NSE-ASI and NSE Market Capitalization) decreased by 0.13% w/w to close for the week at 38,866.39 absolute points and N20.34 trillion compared to 38,916.74 absolute points and N20.36 trillion last Thursday. This nominally translates to a week-on-week loss of N26.33 billion in Market Capitalization value.

Of the five major sectors, only the Consumer Goods sector closed positively with a percentage increase of 1.12%, while the other four major sectors closed negatively for the week, which includes, the Banking sector, Insurance sector, Industrial sector and Oil and Gas sector, with percentage decrease of 2.25%, 1.49%, 0.66% and 0.31% respectively.

losers 1JAPAULGOLD emerged best performing stock for the week with a w/w gain of  40.00%, while GUINNESS shed 17.27% to emerge as the top loser.

A total turnover of 887.04 million shares worth N9.19 billion in 17,837 deals was traded this week by investors on the floor of the Nigerian Stock Exchange as against a total of 1.45 billion shares worth N19.04 billion in 17,400 deals.

Seventeen (17) equities appreciated in price during the week, lower than forty-two (42) equities in the previous week. Forty (40) equities depreciated in price higher than twenty-two (22) equities in the previous week, while one hundred and five (105) equities remained unchanged, higher than ninety-eight (98) equities recorded in the previous week

Outlook
We expect mixed sentiment from investors in the coming week, amid profit-taking from recently appreciated stocks and low valued stocks in the market.

FOREIGN EXCHANGE 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 it strengthened in the I&E FX windows, gaining 0.07% to close the week at ₦409.00/USD as against ₦409.30/USD last Thursday.
In the meantime, the foreign reserves this week grew by $130million from the level of $34.85 billion (01/04/2021) to $34.98 billion (06/04/2021), despite the Crude oil price losing $1.91pbl w/w from $64.86pbl last Friday to $62.95pbl.

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