NGX-ASI Surged by 0.72%w/w on Sustained Bullish Sentiments
Global stock sees sell-off, amidst increase in U.S. inflation rate
This week, sell interest dominated in ten (10) of the fourteen (14) stock markets under our coverage, on the report of U.S Consumer Price Index and Labour Department jobless claim.
The data shows U.S. Consumer Price Index (CPI) rose by 0.8% last month, the largest amount in nearly 12 years (June 2009), and a fall in U.S jobless claims to hit a 14-month low.
However, all of the three broadest market indices in the U.S, which includes the DJIA Index, the S&P 500, and the Nasdaq Composite Index declined by 1.14% w/w, 1.39% w/w, and 2.34% w/w respectively, despite Federal Reserve officials providing repeated assurances that there would be no imminent move to tighten monetary policy in the world’s biggest economy.
Similarly, the major market around Europe, UK FTSE 100, France CAC 40, lost 1.21% w/w, 0.01% w/w respectively, except German DAX that gained 0.11% w/w.
However, three of the four major markets in Asia, Japan Nikkei 225, Hong-Kong HANG SENG Index, and India S&P BSE lost 4.34%w/w, 2.04%w/w, and 0.96%w/w respectively, save for China Shanghai Composite Index that gained 2.09%w/w, amid reports of a resurgence of Covid-19 cases in the region.
Furthermore, mixed sentiment prevailed in the emerging market indices under our coverage, Brazil’s BOVESPA, and South-Africa FTSE/JSE Index all lost 0.13%w/w, 2.80%w/w respectively, save for Argentina MERVAL Index and Egypt EGX 30 that gained 6.67%w/w and 1.70%w/w respectively.
We expect to see some mixed recovery in the next trading week in reaction to the U.S. Consumer Price Index (CPI) data and Labour Department jobless claim report.
Stock Market Sustained Bullish Run, as NGX-ASI Surged by 0.72%w/w
Transactions on the Nigerian Equity Market closed w/w on a bullish note, as positive performances were recorded in three trading sessions due to the two days holiday break in the week. The bull run we believe was a result of investors’ sustained buy-interest in bellwethers stocks. Consequently, the Market Indicators (NSE-ASI and NSE Market Capitalization) increased by 0.72% w/w to close for this week at 39,481.89 absolute points and N20.58 trillion compared to 39,198.75 absolute points and N20.43 trillion last Friday. This nominally translates to a week-on-week gain of N15.00 billion in Market Capitalization value.
All of the five major sectors closed positively, led by the Banking Sector (+3.15%), Insurance Sector (+1.86%), Industrial Goods (+0.80%). Consumer Goods Sector (+0.32%), and Oil and Gas Sector (+0.10%).
CHIPLC emerged best performing stock this week with a w/w gain of +25.64%, while ACADEMY shed -10.00% to emerge as the top loser.
A total turnover of 840.33 million shares worth N9.56 billion in 13,232 deals was traded this week by investors on the floor of the Nigerian Stock Exchange as against a total of 1.42 billion shares worth N15.92 billion in 18,459 deals.
Thirty-three (33) equities appreciated during the week, higher than thirty-one (31) equities in the previous week. Nineteen (19) equities depreciated, lower than thirty-seven (37) in the previous week, while one hundred and nine equities (109) remained unchanged, higher than ninety-two (92) equities recorded in the previous week.
We expect mixed sentiment in the coming week, amidst profit-taking from the recent price appreciation in major sectors and rising yield in treasury bills.
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 at the I&E FX windows, the USD closed the week at ₦411.67/USD against ₦410.33 from last Friday’s position.
In the meantime, the foreign reserves this week declined by $136.92 million from the level of $34.58 billion (11/05/2021) to $34.72 billion (07/05/2021), as the Brent Crude oil price also increased by $0.43 pbl w/w from $68.28 pbl last Friday to $68.71pbl.
Source: GTI Research