By Taofik Salako,Deputy Group Business EditorNigerian equities recorded the highest decline amid widespread rally across major advanced and emerging global markets.Global equities analysis at the weekend showed a bullish outlook, but Nigerian equities were the contrarian with successive losses in four out of the five trading sessions during the week led to net loss of N663 billion.Benchmark indices at the stock market showed an average decline of 3.04 per cent, the highest among the tracked advanced and emerging stock markets.The average decline of 3.04 per cent implied net capital depreciation of N663 billion. The decline cut stocks average year-to-date return to 0.42 per cent.The All Share Index (ASI)the value-based common index that tracks all share prices at the Nigerian Stock Exchange (NSE)closed weekend at 40,439.85 points as against its weeks opening index of 41,709.09 points.Aggregate market value of quoted equities at the Exchange also dropped correspondingly from its opening value of N21.819 trillion to close at N21, 156 trillion, a decrease of N663 billion.The performance of the Nigerian stocks was contrary to widespread gains in the United States, Europe, Asia and Middle East. In U.S., the S & P 500 Index rose by 0.6 per cent while NASDAQ Index appreciated by 1.0 per cent. In United Kingdom, the FTSE All-Share Index rose by 0.6 per cent. In Europe, France CAC 40 Index rallied by 0.5 per cent. Hong Kongs Hang Seng index rose by three per cent. Japans Nikkei 225 Index rose by 2.6 per cent. Chinas Shanghai Composite Index leapt by 4.5 per cent. Indias BSE Index rallied by 1.6 per cent. Russias RTS Index inched up by 0.9 per cent.Emerging markets of Asia and Middle East were largely bullish. Saudi Arabias Tadawul All Share Index rose by 3.8 per cent. Thailands SET Index appreciated by 1.7 per cent. Turkeys BIST 100 Index rallied 0.9 per cent. Qatars DSM 220 Index gathered 0.5 per cent while UAEs ADX General Index inched up by 0.1 per cent.African markets were mixed, showing tight trades between the bulls and the bears. South Africas FTSE/JSE All-Share Index rose by 2.8 per cent. Ghanas GSE Composite Index appreciated by 6.0 per cent while Kenyas NSE 20 Index rose by 1.3 per cent. However, Morrocco Casablanca MASI Index dropped by 1.3 per cent. Mauritius SEMDEX Index declined by 0.6 per cent. Egypts EGX 30 Index dipped by 0.5 per cent. Germanys XETRA DAX Index also declined by 0.4 per cent while Brazils Ibovespa Index slipped by 1.6 per cent.The momentum of activities at the market also slowed down with total turnover of 2.68 billion shares worth N23.66 billion in 27,844 deals last week as against a total of 2.77 billion shares valued at N29.69 billion traded in 31,380 deals two weeks ago.The financial services sector continued to dominate activities chart with a turnover of 2.032 billion shares valued at N13.416 billion in 14,832 deals; thus contributing 75.74 per cent and 56.70 per cent to the total equity turnover volume and value. The consumer goods sector followed with 181.766 million shares worth N3.601 billion in 4,676 deals while the third place was conglomerates sector with a turnover of 175.085 million shares worth N324.006 million in 1,168 deals.Banking stocks dominated the chart. The three most active stocks were Living Trust Mortgage Bank Plc, First Bank Holding Plc and Zenith Bank Plc. The three most active stocks accounted for for 1.208 billion shares worth N6.580 billion in 3,785 deals, contributing 45.02 per cent and 27.81 per cent to the total equity turnover volume and value.Also, a total of 1.394 million units of Exchange Traded Products (ETPs) valued at N5.163 billion were traded in 36 deals compared with a total of 238,451 units valued at N1.799 billion traded in 38 deals penultimate week.At the debt market, a total of 46,721 units of bonds valued at N60.054 million were traded in 19 deals compared with a total of 8,002 units valued at N9.171 million traded in seven deals two weeks ago.Further share pricing analysis showed that there were 16 advancers and 55 decliners last week compared with 22 advancers and 60 decliners recorded in the previous week. Mutual Benefits Assurance recorded the highest gain of 10.53 per cent to close at 42 kobo per share. Conversely, Northern Nigeria Flour Mills recorded the highest drop of 18.84 per cent to close at N7.02 per share.At the NASD OTC Securities Exchange, the NASD Security Index (NSI) indicated positive trading at the over-the-counter platform. The NSI return rose by 1.45 per cent to close the week at 735.84 points as against 725.29 points recorded in the previous week.In the coming week, we expect earnings result to direct performance and investors to seek bargain hunting opportunities, Afrinvest Securities stated.Analysts at Cowry Asset Management said they expected Nigerian equities to rebound as investors seek for bargains in the market given the lower re-entry prices for stocks with good fundamentals and dividend history ahead of the audited full year 2020 financial results and the announcements of their dividend payment.The analysts added that the possibility of increased returns in fixed-income market may moderate trading in the days ahead.Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings, Cordros stated.
Click here to read full news..
