FRI 19 MARCH, 2021-theGBJournal- A total turnover of 2.342 billion shares worth N19.272 billion in 20,173 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.675 billion shares valued at N23.541 billion that exchanged hands last week in 21,732 deals, the Nigerian Stock Exchange (NSE) data shows.
Trading in the top three equities namely Unity Bank Plc, Guaranty Trust Bank Plc and Multiverse Mining and Exploration Plc (measured by volume) accounted for 1.471 billion shares worth N7.114 billion in 2,317 deals, contributing 62.82% and 36.91% to the total equity turnover volume and value respectively.
However, losses recorded in the shares of heavyweight cement companies DANGCEM and BUACEMENT, on the final trading day of the week, wiped off the cumulative gains of 0.7% as of Thursday, as the local bourse suffered its seventh consecutive weekly loss.
Specifically, the All-Share Index declined by 0.7% w/w to close at 38,382.39 points. Consequently, the YTD loss increased to -4.7%.
Activity levels were mixed, as trading volumes rose by 44.7% w/w while value traded declined by 6.5% w/w. Notably, sell-offs in bellwether stocks BUACEMENT (-6.4%), NB (-5.3%), and MTNN (-0.6%) drove the weekly loss.
Sectoral performance was mixed as the Banking (+2.1%), and Oil and Gas (+1.6%) indices posted gains while the Industrial Goods index (-2.6%) and Consumer Goods (-1.5%) recorded losses. The Insurance (0.0%) index closed flat.
The Financial Services Industry (measured by volume) led the activity chart with 1.888 billion shares valued at N12.446 billion traded in 12,019 deals; thus contributing 80.60% and 64.58% to the total equity turnover volume and value respectively. The Natural Resources Industry followed with 201.260 million shares worth N41.295 million in 27 deals. The third place was Conglomerates Goods Industry, with a turnover of 62.053 million shares worth N65.672 million in 612 deals.
Cordros Research analysts said in a note to theGBJournal that in the week ahead, they expect investors’ attention to be focused on the outcome of the MPC meeting as they seek clarity on the direction of yields in the fixed income market.
‘’We expect the choppy trading pattern that played out this week to persist in the week ahead, as investors continue to cherry-pick dividend-paying stocks and at the same time remain cautious about leaving gains in the market.
Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.’’
Meanwhile, global stocks posted mixed performances as investors’ positive reaction to the dovish outcome of the US Fed meeting was deflated by the rise in US bonds yields and fresh concerns around Sino-US relations following a rocky meeting in Alaska. In the US, the DJIA (+0.3%) and S&P (-0.7%) clawed back gains accumulated earlier in the week as investors sold off tech stocks in the wake of rising treasury yields (The yield on 10-year treasury hit 1.75%, a level last seen since January 2020).
In Europe, the STOXX Europe (+0.4%) and FTSE 100 (-0.3%) also gave up gains earmarked earlier in the week as the third wave of COVID-19 infections dampened hopes of a V-shaped recovery.
In Asia, the Nikkei 225: (+0.2%) managed to stay in the green territory despite sell-offs fuelled by the Bank of Japan’s announcement of an end to its purchases of Nikkei-linked exchange-traded funds.
The SSE: (-1.4%) extended losses from the prior week as investors reacted to rising bond yields in the US. Emerging markets (MSCI EM: -1.1%) stocks also mirrored the weak appetite for global equities consequent on the losses in India (-2.1%) and China (-1.40%), while Frontier (MSCI FM: +0.8%) market stocks posted marginal gains, driven by gains in Kenya (+2.1%).