Investors in the Nigerian Exchange Limited gained N292 billion in the week ended July 2, 2021 as stock traders positioned for the first half of the year’s reports.
Investors traded 1.006 billion shares worth N10.330 billion in 17,165 deals in the week under review, against a total of 981.147 million shares valued at N10.384 billion that exchanged hands in 15,001 deals in the previous week.
In terms of the volume traded, the financial services industry led the activity chart with 646.404 million shares estimated at N5.199 billion traded in 8,996 deals, therefore, the sector contributed 64.26 percent and 50.33 percent to the total equity turnover volume and value, respectively.
This was trailed by the consumer goods industry with 108.587 million shares worth N2.257 billion but transacted in 3,213 deals. In third place was the conglomerates industry with a total turnover of 80.257 million shares valued at N179.134 million in 614 deals.
The top three most traded equities were Zenith Bank Plc, Transcorp Hotels Plc and Access Bank Plc. The three accounted for 207.341 million shares worth N2.510 billion in 2,774 deals and contributed 20.61 percent and 24.30 percent to the total equity turnover volume and value, respectively.
The market capitalisation of listed equities gained N292 billion or 1.49 percent from N19.627 trillion recorded in the previous week to N19.919 trillion last week.
While the Nigerian Exchange Limited All-Share Index gained 1.47 percent or 553.75 index points from 37,658.26 index points posted in the previous week to 38,212.01 index points last week.
The year-to-date decline of the index improved to -5.11 percent but 0.80 percent growth in the month of July or the third quarter so far.
All indices, with exception of NGX Oil/Gas and NGX Growth Indices, finished higher. while the NGX ASeM, NGX-AFR Bank Value Index, and NGX Sovereign Bond Indices closed flat.
Ikeja Hotel led gainers with a 60 percent increase in share price from N1 to N1.60 as shown below. The Linkage Assurance Plc followed with 30.77 percent from N0.65 to N0.85. See the details below.
Nigerian Exchange Sustains Bullish Momentum, Adds N305bn to Investors’ Wealth
The Nigerian Exchange Limited (NGX) continued its bullish run on Wednesday as investors gained N305 billion.
The Exchange has now gained N471 billion in the last two trading sessions following a N259 billion decline recorded on Monday due to the plunge in the value of some medium-cap stocks.
At the close of trading on Wednesday, the All-Share Index and market capitalization rose by 0.78% to 71,808.64 and N39.294 trillion, respectively.
The year-to-date gains of the index rose to 40.11%.
A total of 34 stocks closed in the green against 22 that closed in the red as a total of 121 stocks exchanged hands during the day.
This positive momentum was primarily driven by share price appreciation from top gainers, including Thomas Wyatt (9.93%), FBN Holdings (9.91%), Multiverse (9.90%), Ecobank Transnational Incorporated (9.88%), and Infinity Trust Mortgage Bank (9.70%).
However, some stocks experienced losses, including Axa Mansard Insurance, Guinea Insurance, and Oando Plc, with share dips of 9.69%, 9.68%, and 9.13%, respectively.
Sectorial performances varied with NGX Insurance, NGX Consumer Goods, and NGX Industrial Goods indices recording losses, while the Oil/Gas sector reported a lull performance.
Notably, tier I banking stocks fueled the Banking sector to a substantial 5.01% gain, with GTCO, United Bank for Africa, AccessCorp, and Zenith Bank leading in volume and value, contributing to the overall market bullishness.
Positive trading activity continued, with a 19.90% increase in total deals, 59.15% rise in volume, and an 8.88% uptick in value, totaling 8,412 deals, 690.01 million units, valued at N12.10 billion.
GTCO emerged as the most actively traded security in terms of volume and value, with 76.70 million units worth N3.04 billion exchanged in 260 deals.
Global Markets Face Headwinds as European Equities Drop Amid Economic Concerns
European equity experienced a decline following losses in Asian shares, the pressure created by weak oil prices and growing apprehensions about China’s economic outlook.
The Euro Stoxx 50 contract fell by 0.5%, mirroring a broader trend of cautiousness in the markets.
The drop in Asian stocks from Hong Kong to mainland China and Australia followed a third consecutive daily decline for the S&P 500 and contributed to a general atmosphere of market uncertainty.
Treasury yields rose after a previous drop, with the 10-year note experiencing its lowest levels since August.
The shift in sentiment was evident in a seven-basis-point jump, in tandem with a selloff in Japanese sovereign debt.
Energy producers faced declines due to oil reaching its lowest point since June amid oversupply concerns.
Also, Moody’s Investors Service’s downgrade of its outlook on several Chinese companies, coupled with worries about the nation’s debt burden, contributed to equity weakness.
A surprise contraction in China’s imports in November further fueled concerns about the economic slowdown.
Investors are now eyeing Friday’s US jobs report following private payrolls data that fell short of estimates, indicating potential softening in the employment market.
Meanwhile, oil stabilized after a five-day losing streak, and focus is on the upcoming OPEC+ production plans.
The dollar remained relatively steady against major currencies, and as markets await the Federal Reserve’s meeting next week, there is anticipation regarding potential shifts in market expectations based on quarterly forecasts.
In corporate news, Apple Inc. is preparing for new models and upgrades, aiming to reverse declining sales, while Advanced Micro Devices Inc. targets the artificial intelligence market dominated by Nvidia Corp.
Gold extended gains and bitcoin traded below $44,000, a level not seen since June last year.
Nigerian Exchange Rebounds with N166bn Gain, Led by Key Banking and Tech Stocks
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