Foreign Reserve Surge by Over $550 million (w/w), as Bear Returns to Local Bourse

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GLOBAL MARKET

Mixed Sentiment, as US Job Market Suffers Setback

This week, positive sentiment dominated nine (9) out of fourteen (14) indices under our coverageGlobal market 04092021. This performance was a result of the highly-anticipated job report for August which added 235,000 jobs below the estimated output of 720,000, therefore, casting a doubt on Federal Reserve moves to taper economic stimulus from the next meeting.

Consequently, in the US market, S&P 500 Index, and Nasdaq Composite  Index appreciated by  0.58%w/w, and 1.55%w/w respectively while DJIA Index depreciated by 0.24%w/w

In Europe; the France CAC 40, increased by 0.12%w/w, while UK FTSE 100, and the German DAX Index declined by 0.14%w/w, and 0.45%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 5.38%w/w, 1.94%w/w, 1.69%w/w, and 3.57%w/w respectively,.

In emerging markets under our coverage, Egypt EGX 30, and Argentina Merval Index increased by 1.58%w/w, and 2.09%w/w, respectively while South Africa FTSE/JSE and Brazil Bovespa Index declined by 1.88%w/w and 3.10%w/w

Outlook

In the coming week, we expect mixed sentiment, as investors make decisions based on the latest August job reports and the likely setback in the Federal Reserve plans to slow down economic stimulus.

 

EQUITY MARKET

NGX

Local Bourse Dropped 0.57% w/w. As Negative Sentiments Dampen Investors AppetiteGAINERS 04092021

Transactions on the Nigerian Bourse closed w/w in the red zone. As negative performances were recorded in three (3) of the five (5) trading sessions. This was a result of Investors’ sell-off of large and medium capitalized stocks. Consequently, the NGX-ASI depreciated by 0.57% from 39,485.65  points to close at 39,261.0 points.

Investors lost about N117 billion, as Market Capitalization. depreciated from N20.573 trillion in the previous week to N20.456 trillion.

At the end of the week, out of the five NGX indices under our coverage, only Insurance Index emerged as the top performer with a w/w gain of +1.51%, while the other remaining sectors recorded negative performances as follows: Industrial Goods Index (-17.56%), Oil&Gas Index (-11.06%), Consumer Goods Index (-1.34%), Banking Index (-0.58%),

According to the NGX Weekly Summary Report, TRANSCOHOT emerged as the best performing stock for the week with a w/w gain of +10.00%, while OANDO emerged as the worst-performing stock with a w/w loss of -15.21%.

A total of 1.338 billion shares worth N8.650 billion in 19,830 deals were traded this week by investors of the Nigerian Exchange Group (NGX), as against a LOSER 04092021 1 total of 1.03 billion shares worth N8.183 billion in 18,102 deals last week.

Twenty-six (26) equities appreciated in price during the week, lower than Thirty-five (35) equities in the previous week. Thirty-six (36) equities depreciated in price, higher than Twenty-nine (29) equities in the previous week, while ninety-four (94) equities remained unchanged, as against ninety-two (92) equities recorded in the previous week.

 

Outlook

In the coming week, we expect mixed sentiment as bargain hunters take advantage of recently depreciated stock prices amidst profit-taking as well. Furthermore, corporate information and movement in the fixed income market may also influence market sentiment.

NASD OTC

NASD Recedes by 0.20% (w/w) To Close Bearish

Transactions on the NASD OTC Security Exchange Market closed on a bearish note to reverse the previous week’s gains, as the NASD Security Index NSI depreciated by 0.20%, representing 1.48 basis points to close at  734.90 points against 736.38 points in the previous week. Investors gained N1.30 billion for the week, as the NASD OTC Market Capitalisation closed at N640.05 billion for the week.NASD OTC 04062021

Total trading activity for the week was valued at N6.040 million valued at N 95.427 million in 106 deals, against 13.729 million valued at N 361.168 million in 129 deals recorded in the previous week. The most traded stocks on the exchange for the week are; SDNGXGROUP, and SDCSCSPLC.

Outlook

We expect the NASD OTC Market to trade in a tight range in the coming week.

 

Money MarketMONEY MARKET RATE 04092021

The system liquidity indicators closed higher, as Overnight (O/N) and Open Buy Back (OBB) rates appreciated to 13.50% and 8.50% respectively, from 13.00% and 8.33% in the previous week.

FOREIGN EXCHANGE 03092021Foreign Exchange Market

At the I&E FX window, the Naira appreciated by 0.12%(w/w) to close on Friday (02/09/2021) at ₦411.50/USD against ₦412.00/USD from last Friday’s position. Also, at the BDC, Naira depreciated by 1.54%(w/w) to close on Friday (02/09/2021) at ₦528/USD against ₦520/USD from last Friday’s position.

FOREIGN RESERVE 04092021

Foreign Reserve

The Foreign Reserve surged by $608.85 million to the level of $34.18 billion (02/09/2021) from $33.57billion (26/08/2021).

CRUDE OIL 04092021 Crude Oil

The WTI Crude appreciated by $0.55/barrel(w/w) to $69.29/barrel this Friday (03/09/2021) as against $68.74/barrel last Friday (27/08/2021), representing an increase of 0.80% (w/w). Also, Nigeria’s Bonny Light also increased by $1.74 to $71.76/barrel on Friday (03/09/2021) from $70.02/barrel (27/08/2021), representing a growth of 2.49% (w/w) while, the Brent Crude depreciated by $0.09/barrel (w/w) to $72.61 this Friday (03/09/2021) as against $72.70 last Friday (27/08/2021) last Friday (27/08/2021), representing 0.12% decline

 

Source: GTI Research

GTI

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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