Local Bourse Declined by 0.57%w/w
Global shares mixed, as new Covid-19 virus variant disrupts recovery
This week, mixed sentiment prevailed on market indices under our coverage with eight (8) decliners and six (6) advancers, as the new delta Covid-19 variant continues to dampen hopes of global economic recovery.
Conversely, all the major indices in the U.S; the S&P 500 Index, tech-heavy Nasdaq Composite and DJIA index advanced by 0.40%w/w, 0.42%w/w and 0.24%w/w respectively, as financials and other economically focused sectors rebounded from a selloff sparked by growth worries earlier in the week.
However, all the major markets around Europe, France CAC 40, German DAX, and UK FTSE 100 Index receded by 0.36% w/w, 0.02%w/w respectively, save for the German DAX index that gained 0.24%w/w.
Also, the major indices in Asia under our coverage, S&P BSE India, Japan Nikkei 225 and Hong-Kong HANG SENG Index all lost 0.19%w/w, 2.93%w/w, and 3.41%w/w respectively, except China Shanghai Composite Index that gained 0.15%w/w.
Furthermore, three of four major indices in the emerging market indices under our coverage, Brazil’s BOVESPA, Argentina MERVAL, Egypt EGX 30 slumped by 1.72%w/w, 1.51%w/w, and 0.70%w/w respectively, save for South-Africa FTSE/JSE Index that gained marginally by 0.09%w/w
We expect the global equity market to maintain a mixed posture in the next trading week, as the Covid-19 delta variant continues to disrupt global economy recovery.
Local Bourse Declined by 0.57%w/w
The Nigerian Bourse ended w/w trading activities on a negative note. Even though, positive performances were recorded in three of the five trading sessions. This was driven by investors profit-taking in bellwether stocks. Consequently, the (NGX-ASI depreciated by 0.57%w/w, while the NGX Market Capitalization declined by 0.62% w/w as a result of the price adjustment of FIDSON to close the week at 37,994.19 absolute points and N19.97 trillion compared to 38,212.01 absolute points and N19.27 trillion last Friday. This nominally translated to a week-on-week loss of N123.71 billion in Market Capitalization value.
Oil&Gas Sector emerged as the best performer with a percentage gain of +6.53%. Followed by the Banking Sector, Industrial Goods Sector, and Insurance Sector with percentages of +3.29%, +0.19%, and +0.17% respectively. While Consumer Sector closed negatively with a percentage of -0.32%.
UPDC PLC emerged as the best performing stock this week with a w/w gain of +40.70%, while RED STAR shed -15.26% to emerge as the top loser.
A total turnover of 1.35 billion shares worth N12.14 billion naira in 21,581 deals was traded this week by investors on the floor of the Nigerian Stock Exchange as against a total of 1.02 billion shares worth N14.44 billion naira in 17,558 deals last week.
Forty-four (44) equities appreciated during the week, higher than Forty-three (43) equities in the previous week. Twenty-two (22) equities depreciated, lower than Twenty-six (26) equities in the previous week, while ninety (90) equities remained unchanged higher than eighty-seven (87) equities recorded in the previous week.
In the coming week, we expect mixed sentiments, as companies prepare to release their H1’2021 financial results.
The NASD Security Index NSI fell by 1.24.%, representing 9.34 basic points to closed at 744.39 points against 753.73 points in the previous week. In addition, the NASD OTC Market Capitalisation closed at N529.12 billion for the week.
Total trade activity for the week was valued at N19.64 million in 170 deals. The most traded stocks on the exchange for the week are, SDNGXGROUP, SDCSCSPLC, SDFCWAMCO, and SD11PLC.
The overnight (O/N) rate increased by 64.00 w/w this Friday (09/07/2021) to 20.50% when compared to 12.50% last Friday(02/07/2021). Similarly, the open buy-back (OBB) appreciated by 64.58% w/w on Friday (09/07/2021) to 19.75% when compared to 12.00% the previous Friday (02/07/2021).
Foreign Exchange Market
At the I&E FX window, the naira depreciated by 0.12%(w/w) to close on Friday (09/07/2021) at ₦411.75/USD against ₦411.25/USD from last Friday’s position. However, at the BDC, the naira remained unchanged at ₦500.00 this Friday (09/07/2021).
The foreign reserve this week weakened by $158.50 million to the level of $33.12 billion (08/07/2021) from $33.28 billion (01/07/2021).
The Brent Crude price depreciated by $0.62/barrel (w/w) to $75.55/barrel this Friday (09/07/2021) as against $76.17/barrel last Friday (02/07/2021), representing a fall of 0.81% (w/w).
Source: GTI Research