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Saturday, July 2, 2022

Nigeria’s equity market falls 0.29% as naira weakens to N421.5/$ on I&E

By Ifeyinwa Ezeokoli 
Trading activities in the domestic equity market resumed for the week on Monday on a negative note, as profit-taking witnessed in Lafarge Africa (-8.3  per cent) and MTNN (-0.6 per cent) caused a 0.29 per cent decline in the benchmark index.
The All-Share Index (ASI) declined by 154.37 points or 0.29 per cent to close at 52,944.09 points compared with 52,917.76 points last trading day.
Accordingly, the month-to-date and year-to-date returns decreased to 6.7 per cent and 23.9 per cent, respectively.
Similarly, the overall market capitalisation value lost N83 billion to close at N28.543 trillion.
The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Lafarge Africa, MTN Nigeria Communications (MTNN), International Breweries, GlaxoSmithKline Consumer Nigeria and Flour Mills of Nigeria.
On market outlook, GTI Securities Limited stated that “Stock market resumes trading activities this week bearish, as inflation advances by 16.82 per cent. This week, we expect profit-taking to continue.”
United Capital Plc said that: “We anticipate continued market interest in the domestic equities space, as money managers will continue to cheery pick stocks with solid fundamentals, following the relatively quiet fixed income space.”

The National Bureau of Statistics (NBS) released its April 2022 inflation report, indicating an increase of 0.90 per cent in the headline inflation rate to 16.82 per cent from 15.92 per cent recorded in March 2022.

The Core inflation, which excludes volatile agricultural produce prices, stood at 14.18 per cent in April 2022, up by 0.27 per cent compared to 13.91 per cent in March 2022. The composite food index rose by 18.37 per cent year-on-year in April 2022 compared to 17.20 per cent year-on-year in March 2022.

The NGX 30 Index decreased by 0.24 per cent to close at 2,055.69 points as against 2,060.70 points at the previous close.

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However, market sentiment, as measured by market breadth was positive with 27 gainers in relative to 20 losers.
McNichols drove the gainers’ chart and recorded the highest price gain of 9.70 per cent to close at N1.47 per share. 
Northern Nigeria Flour Mills (NNFM) followed with a gain 9.55 per cent to close at N10.90, while Transcorp rose by 8.53 per cent to close at N1.40 per share.
Wapic Insurance rose by 7.14 per cent to close at 45k, while Consolidated Hallmark Insurance advanced by 7.02 per cent to close at 61k per share.
On the other hand, Champion Breweries led the losers’ chart in percentage terms by 9.84 per cent to close at N3.94 per share.
GlaxoSmithKline followed with a decline of 9.49 per cent to close at N7.15, while International Breweries depreciated by 9.09 per cent to close at N8 per share.
Neimeth International Pharmaceuticals declined by 8.33 per cent to close at N1.76, while Lafarge Africa depreciated by 8.28 per cent to close at N28.80 per share.
Meanwhile, the total volume of trades increased by 23.30 per cent to 374.18 million units valued at N4.96 billion exchanged in 6,854 deals. 
Transactions in the shares of Transcorp topped the activity chart with 88.59 million shares valued at N118.99 million.
Jaiz Bank followed with 87.42 million shares worth N77.86 million, while Access Holdings traded 28.75 million shares valued at N278.56 million.
International Breweries traded 16.21 million shares valued at N130.24 million, while Ikeja Hotel transacted 11.38 million shares worth N12.63 million.

On the money market, the interbank rate declined by 0.92 per cent with the Overnight (O/N) rate closing at 8.25 per cent against the last close of 9.17 per cent.

The Open Repo (OPR) rate decreased by 0.83 percent to close at 7.83 per cent compared to 8.66 percent on the previous day.

Also, the local currency depreciated by 0.60 per cent as the dollar was quoted at N421.50 compared with the last close of N419.00.

Most participants maintained bids between N412.00 and N444.00 per dollar on the I&E foreign exchange window on Monday.

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