Global equities market ignore wars, economic challenges as Nigerian bourse gains N2.1trn

In spite of raging wars in the Middle East and between Russian and Ukraine, both the Nigerian and global equities market went on unconcerned last week with the local bourse adding N2.1 trillion to close at N57.8 trillion last Friday.
The result is that the Nigerian Exchange (NGX)’s All Share Index (ASI) went up by 3.3 per cent, week-on-week (W/W).
The global stock market remained resilient evidenced by the 0.3 per cent w/w gain in the MSCI world index due to bullish dominance across major regions. In the US, the S&P 500 index experienced a mild gain of 0.1 per cent w/w, while the tech-heavy NASDAQ index booked a 0.7 per cent loss.
In other advanced markets, Japan’s Nikkei 225 and Hong Kong’s Hang Seng indices gained 4.4 per cent and 3.8 per cent respectively. Likewise, France’s CAC 40, Germany’s XETRA DAX and UK’s FTSE also appreciated 1.6 per cent, 1.1 per cent and 1.6 per cent respectively.
In the BRICS market, performance was largely bullish, as three of the five indices under our coverage closed positive. Leading the gainers, India’s BSE Sens index rallied by 1.2bper cent w/w, followed by South Africa’s FTSE/JSE ASI which advanced 0.2 per cent w/w. Conversely, Russia’s RTS index declined 1.4 per cent w/w.
In Nigeria, the NGX-ASI rose 3.8bper crnt w/w to 105,722.78 points, market capitalisation advanced N2.1 trillion to N57.8 trillion, while Year-to-Date (YTD) return inched higher to 41.4 per cent (previously: 36.2 per cent). Activity level waned as average volume and value traded fell 36.8 per cent and 23.5 per cent w/w to 342.5 million units and N8.0 billion respectively. Top traded stocks by volume were VERITASKAP (108.9 million units), UBA (104.1 million units) and TRANSCORP (98.8 million units) while GEREGU (N4.7 billion), GTCO (N3.9 billion) and UBA (N2.6 billion) led in terms of value.
 Performance across sectors under our coverage was positive as four indices closed in the green while the other two lost. The Consumer Goods and AFR-ICT indices advanced 11.0 per cent and 5.7 per cent w/w respectively, due to buying interest in BUAFOODS (+20.8 per cent), HONYFLOUR (+4.3 per cent), AIRTELAF (+10.0 per cent) and CHAMS (+9.2 per cent). Similarly, the Oil & Gas and Insurance indices rose 5.2 per cent and 2.7 per cent w/w respectively, on the back of gains in SEPLAT (+9.6 per cent), CORNERST (+12.1%) and MANSARD (+5.3 per cent). Conversely, the Industrial Goods and Banking indices fell 1.8 per cent and 1.3 per cent w/w sequentially, owing to losses in BUACEMENT (-4.6 per cent), WAPCO (-4.6 per cent), ACCESSCORP (-9.1 per cent) and ZENITHBA (-2.8 per cent).
Investor sentiment, as measured by market breadth, improved to -0.2x from -0.7x in the prior week as 34 stocks advanced, 50 declined while 68 closed flat. The top performing stocks for the week were JULI (+45.5 per cent), GEREGU (+33.3 per cent) and BUAFOODS (+20.8 per cent) while MEYER (-19.0 per cent), MORISON (-18.7 per cent) and DEAPCAP (-14.3%) led laggards. In the coming week, we expect the market to record mild gain supported by improved sentiment and corporate earnings releases.

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