The Nigerian bourse ended the trading week on a positive note leaving the All Share Index (ASI) Stock at 24,306.36 basis points, gaining 0.12%.
Accordingly, Month-to-Date and Year-to-Date losses stand at -0.68 per cent and -9.48% respectively, while market capitalization stood at N12.679 trillion after increasing by N14.76 billion.
Market sentiment, as measured by market breadth, was positive, as 12 stocks gained, relative to 9 decliners. IntBrew, Vitafoam and Glaxosmith led the gainers’ chart, while at the rear of the chart, ABC transport, UBA and GTBank led the chart.
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Market upturn was paired with low trading activities compared to the performance recorded yesterday. Total volume and value of stocks traded declined by 29.47 per cent and 62.41 per cent to 131.63 million units and N899.4 million respectively.
STERLNBK was the most traded stock by volume at 17.6million units while ZENITHBANK finished the most traded stock by value at N220.4 million.
Sectoral performance was lukewarm, as one out of the five major sub-indices posted gains, with the Energy and Industrial index closing flat.
The Consumer Goods index (+0.56%) led the gainers, on INTERBREW (+6.94%) and GLAXOSMITH (+4.35%) gains. Losses in UBA (-2.34%), GUARANTY (-1.32%) and ZENITH (-0.30%) impelled losses in the lenders’ Index (-0.68%), followed by the Insurance index (-0.63%), following price decline in REGALINS (-8.33%) and AIICO (-4.26%).
ABCTRANS down 8.93% to close at N0.51, UBA down 2.34% to close at N6.25, GUARANTY down 1.32% to close at N22.45, FBNH down 0.95% to close at N5.2, ZENITHBANK down 0.30% to close at N16.7
Olumide Adesina is a French-born Nigerian.
He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading.
Member of the Chartered Financial Analyst Society.
Behavioral Finance, Duke University.
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The first time since March, both indexes had a drop for the fourth time in five days.
After a recent technology-led selloff, US stocks of big tech brands suffered significant decline at?their last trading session, pausing Wednesday’s rebound, after a recent technology-led selloff.
The tech-heavy Nasdaq Composite Index plunged by 1.99%, to close at 10919.59 points, and the S&P 500 fell lost 1.76%, to close at 3339.19 points, marking the first time since March, that both indexes had a drop for the fourth time in five days.
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The Dow Jones Industrial Average closed down 1.45%, to 27534.58 points.
f4不合What it means:f4不合 As COVID-19 cases continue to rise, it should be noted that US consumer spending is a massive downside risk for equity markets. With services making up around two-thirds of overall spending, the recovery in this part of the economy is crucial, if the US economy hopes to finish the year strongly.
f4不合READ: Why you should consider selling Bitcoin nowf4不合
Stephen Innes, Chief Global Market Strategist, AxiCorp, in a note to Nairametrics, spoke on the prevailing macros at the world’s largest equity market. He said,
“US stocks reversed course and fell for the fourth day in five, spurred by a fresh tech sell-off. The S&P 500 declined 1.8%, and the Nasdaq, where volatility has prevailed for over a week, lost 2%. Energy shares plunged as oil dropped back toward $37. Asian stocks looked most certainly set to drop. Treasuries rose with the dollar. Weaker sentiment returned after US democrats voted to block stimulus legislation worth around $500 billion put forward by Senate Republicans, arguing the package was too small. Perhaps unsurprisingly, given the $3 trillion passed by house democrats in May.”
f4不合READ: Facebook, Microsoft, Amazon shares drop, top U.S official orders lockdownf4不合
The market remains deeply scarred from the tech rout, which in no small part has kept the wall of money sidelined.
Market breadth closed positive as ETERNA led 22 Gainers, as against 12 Losers topped by ABCTRANS.
Nigerian bourse ended Thursday’s trading session on a bullish note.
The All Share Index (ASI) gained by 0.38% to close at 25,520.97 points, as against the 0.28% drop recorded on Wednesday. Its Year-to-Date (YTD) returns currently stands at 4.92%. The Nigerian Stock Exchange Capitalization presently stands N13.313 billion. Investors gained N50.12 billion.
Nigerian Stock Exchange turnover was negative as volume dipped by 12.29% as against the 11.40% surge recorded on Wednesday. ZENITHBANK, FIDELITYBK, and MBENEFIT were the most active to boost market turnover.
SEPLAT leads the list of active stocks that recorded an impressive volume spike at the end of today’s session; followed closely by FIDSON
Market breadth closed positive as ETERNA led 22 Gainers, as against 12 Losers topped by ABCTRANS at the end of today’s session – an improved performance when compared with the previous outlook.
Against headwinds, NSE30 Stocks paused hat-trick of trading session losses, as investors piled funds into MTN, GTBank, Zenith Bank, and Access Bank amid falling crude oil prices, and surging COVID-19 caseloads in Nigeria’s vital international markets.
However, in spite of the recent bullish run, Nairametrics remain concerned about the relatively low amount of institutional investors taking part in the Nigerian trading session in recent days, as market liquidity remains relatively thin, compared to the pre- COVID-19 period.
Apple gained 3.99% to bring its market cap back to $2 trillion after its shares closed at $117.32.
U.S. stock futures traded flat at most of Asia’s trading session on Thursday. This is following a surge during market hours at the U.S trading session on Wednesday, with Apple returning to its $2 trillion market capitalization.
Futures for the Dow Jones Industrial Average dropped by 0.1%. S&P 500 futures and the Nasdaq 100 futures also recorded similar drops.
The calmness seen in U.S Futures follows a broad rally for the market yesterday, with the S&P 500 gaining as high 2% for its best day since June.
f4不合READ: China publicly presents its COVID-19 vaccines, 2 doses to cost below $146f4不合
The Nasdaq Composite rose 2.7% to pull itself out of correction territory after a sell-off for major tech stocks drove a sharp sell-off in three straight sessions.
Some of the stocks hardest hit during the recent slide saw more dramatic pops. Shares of Tesla, fresh off its worst day on record, rose nearly 11%. Tech giant Apple gained 3.99% to bring its market cap back to $2 trillion after its shares closed at $117.32.
f4不合READ: Nigerian Stocks snap 7-year losing streak to post first gain in Augustf4不合
f4不合Quick fact:f4不合 American Stock futures are simply standardized contracts that global traders use in purchasing or selling the U.S stocks at a future date. This means that the U.S stock futures give an insight into what global investors see before the market opens, or after it closes.
Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, spoke on the macros at the world’s largest equity market.
“In a classic case of weak hands selling out to strong hands, and after retail got taken to the cleaners skimming off an enormous level of froth, US equities recovered overnight as the S&P rose 2.0% with a bounce in tech stocks helping the NASDAQ to fare better, up 2.7%.
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“But since investors have not yet mustered up the courage to fill the Tuesday Nasdaq gap, it suggests the tech sector aftershocks are still reverberating and keeping the Wall of Money sidelined in one of the most interconnected market momentum shifts in some time.
“Some good news on the US labor market front as US Job Openings and Labor Turnover Survey (JOLTS) for July was again ahead of expectations – with 2.5 unemployed persons per job opening. That is well below the recent 4.6 peaks in April, although still three times the pre-virus level.”
It should be noted that stock traders will be greeted with massive economic reports today, including the ECB decisions on the Interest rate.
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