Equity Market Extend Bearish Sentiment by 0.86%w/w, As Foreign Reserve Soars to 4-Months High
This week, negative sentiment ruled ten (10) out of fourteen (14) indices under our coverage. This was driven by low investors’ appetite as a result of the weak job report for August and concerns about the COVID’19 Delta variant and its impacts on the economy.
Consequently, in the US market, S&P 500 Index, DJIA Index, and Nasdaq Composite Index depreciated by 1.69%w/w, 2.15%w/w, and 1.61%w/w
In Europe; the France CAC 40, UK FTSE 100, and the German DAX Index decreased by 0.39%w/w, 1.53%w/w, and 1.09%w/w.
All the major indices under our coverage in Asia, the Japan Nikkie 225, Hong kong HANG SENG, China Shanghai Composite, and India S&P BSE Index appreciated by 4.30%w/w, 1.17%w/w, 3.39%w/w, and 0.30%w/w respectively as hope for improved trade relations increased after President Biden and President Xi Jinping phone call.
In emerging markets under our coverage, Argentina Merval Index increased by 1.55%w/w while Egypt EGX 30, South Africa FTSE/JSE, and Brazil Bovespa Index declined by 2.17%w/w, 3.13w/w%, and 2.26%w/w
Next week, we expect mixed sentiment, as Investors await the U.S Consumer Price Index and Retail Sales for August 2021.
Equity Market Extend Bearish Sentiment by 0.86%w/w
The Custom Street closed trading activities w/w on a red note. As negative performances dominated all of the five (5) trading sessions. This was buoyed by Investors’ profit-takings in bellwether stocks. Consequently, the NGX-ASI depreciated by 0.86% from 39,261.0 points to close at N38,921.78 points.
Investors lost about N177 billion, as Market Capitalization depreciated from N20.456 trillion in the previous week to N20.279 trillion.
At the end of the week, out of the five NGX indices under our coverage, Oil&Gas Index emerged as the top performer with a w/w gain of +2.28%, followed by Consumer Goods Index (+0.18%). Insurance Index emerged as the worst performer with a w/w loss of (-3.39%) with Banking Index (-0.96%), while Industrial Goods Index remained unchanged (0.00%),
OANDO emerged as the best-performing stock for the week with a w/w gain of +14.00%, while CHIPLC emerged as the worst-performing stock with a w/w loss of -15.79%.
A total of 1.426 billion shares worth N13.073 billion in 19,315 deals were traded this week by investors of the Nigerian Exchange Group (NGX), as against a total of 1.338 billion shares worth N8.650 billion in 19,830 deals last week.
Twenty-five (25) equities appreciated in price during the week, lower than Twenty-six (26) equities in the previous week. Thirty-four (34) equities depreciated in price, lower than Thirty-six (36) equities in the previous week, while ninety-seven (97) equities remained unchanged, as against ninety-four (94) equities recorded in the previous week.
We expect bullish sentiment In the coming week as bargain hunters take positions in the recently depreciated stocks. However, some investors may take profit from the appreciated stocks.
NASD Recedes by 0.20% (w/w) To Close Bearish
Transactions on the NASD OTC Security Exchange Market closed on a positive note to rebound from the previous week’s loss, as the NASD Security Index NSI appreciated by 0.40%, representing 2.97 basis points to close at 737.87 points against 734.90 points in the previous week. Investors gained N2.59 billion for the week, as the NASD OTC Market Capitalisation closed at N641.34 billion for the week.
Total trading volume for the week was 10.264 million valued at N 1.108 billion in 103 deals. The most traded stocks on the exchange for the week are; SDNGXGROUP, and SDCSCSPLC.
We expect the NASD OTC Market to trade in a tight range in the coming week.
The system liquidity indicators closed higher, as Overnight (O/N) and Open Buy Back (OBB) rates appreciated to 14.50% and 14.00% respectively, from 13.50% and 13.00% in the previous week.
Foreign Exchange Market
At the I&E FX window, the Naira depreciated by 0.12%(w/w) to close on Friday (10/09/2021) at ₦412.00/USD against ₦41.50/USD from last Friday’s position. Also, at the BDC, Naira depreciated by 3.60%(w/w) to close on Friday (10/09/2021) at ₦547/USD against ₦528/USD from last Friday’s position.
The Foreign Reserve surged by $599.21 million to the level of $34.78 billion (10/09/2021) from $34.18billion (02/09/2021).
The WTI Crude appreciated by $0.43barrel(w/w) to $69.72/barrel this Friday (10/09/2021) as against $69.29/barrel last Friday (03/09/2021), representing an increase of 0.62% (w/w). Also, the Brent Crude appreciated by $0.31/barrel (w/w) to $72.92 this Friday (10/09/2021) as against $72.61 last Friday (03/09/2021), representing a 0.43% decline while Nigeria’s Bonny Light also decreased by $0.46 to $71.30/barrel on Friday (10/09/2021) from $71.76/barrel (03/09/2021), representing a decline of 0.64% (w/w).
Source: GTI Research