Local Bourse Lose 2.56%w/w, as Negative Sentiment Persist

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GLOBAL MARKET

Global Stocks Bound Back on U.S Infrastructural Deal, Inflation Data

This week, world stocks reach high as buy sentiment prevailed on market indices under our coverage with thirteen (13) advancers and one (1) decliner, after U.S President Joe Biden embraced a bipartisan senate infrastructural deal, this may extend the recovery in the world’s largest economy after massive fiscal stimulus helped the economy grew at a 6.4% annualized rate in the first quarter.

GLOBAL MARKET 1

Also, U.S Personal Consumption Expenditure (PCE) price index, excluding the volatile food and energy components, increased 0.5%. In the 12 months through May, the P.C.E price index shot up 3.4% y-o-y.

Accordingly, in the U.S, the S&P 500 Index advanced by 2.74%w/w, boosted by gains in Nike and sector stocks. The tech-heavy Nasdaq Composite and DJIA index both gained 2.35%w/w and 3.44% w/w respectively.

Also, all the major markets around Europe, France CAC 40, German DAX, and UK FTSE 100 Index gained 0.82% w/w, 1.04% w/w, and 1.69% w/w respectively, as travel picks up in Europe.

Furthermore, the major indices in Asia under our coverage, China Shanghai Composite, India S&P BSE Index, Japan Nikkei 225, and Hong-Kong HANG SENG all advanced 2.34%w/w, 1.11%w/w, 0.35%w/w, and 1.69%w/w respectively.

All the major indices in the emerging market indices under our coverage, South-Africa FTSE/JSE Index and Egypt EGX 30 gained 0.88%w/w, and 4.19%w/w respectively, save for Brazil’s BOVESPA, which slumped by 0.90%w/w and Argentina MERVAL that remained unchanged.

We expect the global equity market to maintain a positive posture in the next trading week in reaction to U.S President Joe Biden Infrastructural plan. However, important economic data and monetary authorities may sway investors’ sentiment.  

EQUITY MARKET

Local Bourse Lose 2.56%w/w, as Negative Sentiment Persist

Transactions on the Nigerian Equity Market ended w/w on a bearish note as negative performances dominated four of the five trading sessions in the week. The downturn was due to sell-offs in large and medium capitalized stocks. Consequently, the Market Indicators (NGX-ASI and NGX Market Capitalization) shed by -2.56% w/w to close this week at 37,658.26 absolute points and N19.63 trillion compared to 38,648.91 absolute points and N20.14 trillion last Friday. This nominally translated to a week-on-week loss of N516.32 billion in Market Capitalization value.

Weekly gainer

Four of the five major sectors closed bullish for the week, led by Insurance Sector with +1.14%, Banking Sector, Consumer Goods Sector, Oil & Gas Sector closed by  +0.92%, +0.57%, and +0.12% respectively.  while the Industrial Goods Sector closed negatively with a percentage of -3.33%.

LINKASSURE emerged best performing stock this week with a w/w gain of +18.18%, while CHIPLC shed -13.43% to emerge as the top loser.

Weekly losers

A total turnover of 1.01 billion shares worth N10.33 billion naira in 17,163 deals was traded this week by investors on the floor of the Nigerian Stock Exchange as against a total of 911 million shares worth N9.31 billion naira in 14,433 deals last week.

Thirty-two (32) equities appreciated during the week, lower than Thirty-eight (38) equities in the previous week. Thirty-seven (37) equities depreciated, higher than Twenty-five (25) equities in the previous week, while ninety-three (93) equities remained unchanged lower than ninety-eight (98) equities recorded in the previous week.

Outlook

Next week, we expect bargain hunters to take advantage of the recently depreciated stock prices, while, some investors will take profits

 

 

 

 

 

weekly money rateMONEY MARKET

The overnight (O/N) rate increased by 19.48% w/w this Friday (25/06/2021) to 23.00% when compared to 19.25% last Friday(18/06/2021). Similarly, the open buy-back (OBB) appreciated by 17.33% w/w on Friday (25/06/2021) to 22.00% when compared to 18.75% the previous Friday (18/06/2021).

 

FOREIGN EXCHANGE MARKET

Weekly foreignAt the I&E FX windows, the naira depreciated by 0.16%(w/w) to close on Friday (25/06/2021) at ₦411.67 against ₦411.00/USD from last Friday’s position. However, at the BDC, the naira depreciated by 0.60% (w/w) from ₦498.00 (18/06/2021) last Friday to ₦495.00 this Friday (25/06/2021).

 

Weekly foreign reserve 2

FOREIGN RESERVE

In the meantime, the foreign reserves this week weakened by $247.17 million to the level of $33.55 billion (24/06/2021) from $33.79 billion (17/06/2021),

 

CRUDE OIL 

Weekly crude oilThe Brent Crude price appreciated by $3.45/barrel (w/w) to $76.18/barrel this Friday (25/06/2021) as against $72.73/barrel last Friday (18/06/2021), representing a rise of 4.74% (w/w). Similarly, the Bonny Light appreciated by $2.05/barrel (w/w) to $75.09/barrel this Friday (25/06/2021) when compared to $73.04/barrel the previous Friday (18/06/2021), representing an increase of 2.81%(w/w).

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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