In response to the unrelenting spread of Coronavirus, the Federal Reserve of the United States of America cut interest rate by 50 basis points (bps) to 1.0 to 1.25 per cent, the deepest cut since 2008.
The number of reported cases increasing 15.8 per cent to 95,333 (as at last week Thursday) across 87 countries and territories from 47 last week (WHO Situation Report).
on te domestic front, gain resurfaces at the Nigerian Stock Exchange (NSE), with the All Share Index (ASI) up 24bpsweek-on-week )w/w).
The equities market opened the week on a negative note. However, it rebounded on the following trading session before recording successive gains on Wednesday and Thursday. Nonetheless, the market shed some of its gains on Friday, but ended the week on a green note.
Consequently, the All-Share Index recorded a gain of 0.2 per cent w-o-w to 26,279.61 points, following price appreciation in UAC-PROP (+22.9per cent), UACN (+18.9 percent) and LAWUNION (+16.7 per cent).
Also, Year-to-Date (YTD) loss stood at -2.1 per cent while investors gained N37.4 billion as market capitalisation rose to N13.7 trillion. Activity level advanced as average volume and value traded rose 17.3 per cent and 7.2 per cent to 362.7m units and N5.2 billion respectively.
The most actively traded stocks by volume were GUARANTY (277.4 million units), ZENITH (210.9m units) and UBA (131.5m units) while GUARANTY (N6.6 billion), NESTLE (N5.1 billion) and ZENITH (N4.1 billion) led by value.
Sector performance was bullish as four of six indices under our coverage gained. The Banking (+3.8 per cent) and AFR-ICT (+1.8 per cent) indices led gainers on the back of appreciation in FBNH (+13.8 per cent), WEMABANK (+13.0 per cent) and MTNN (+4.5 per cent).
Similarly, LAWUNION (+16.7 per cent) and MOBIL (+10.0 per cent) drove gains in the Insurance (+1.4 per cent) and Oil & Gas (+0.8 per cent) indices. Conversely, the Consumer and Industrial Goods indices dipped 5.9 per cent and 4.3 per cent w/w respectively, owing to losses in UNILEVER (-13.3 per cent), NESTLE (-10.0er cent) and WAPCO (-11.9 per cent).
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.4x from the 0.1x recorded last week as 33 stocks gained against the 24 that declined while 87 tickers closed flat. UAC-PROP (+22.9 per cent), UACN (+18.9 per cent) and LAWUNION (+16.7 per cent) led the top gainers while UNILEVER (-13.3 per cent), WAPCO (-11.9 per cent) and NESTLE (-10.0 per cent) led decliners. We anticipate a mixed performance in the coming week as we expect both profit taking activities and bargain hunting to dominate trade.
Performance across the developed market was mixed albeit negatively skewed. In the US, the S&P 500 and NASDAQ rose 2.4 per cent and 2.0 per cent w/w respectively. Likewise, Hong Kong’s Hang Seng index climbed 0.1 per cent higher. Meanwhile, the UK’s FTSE All Share index dipped 1.8% w/w as the number of coronavirus cases increased to 115 and the first death was recorded. Similarly, Germany’s XETRA DAX and France’s CAC 40 indices declined 3.1 per cent and 3.0 per cent w/w respectively as the number of coronavirus victims rose while Japan’s Nikkei 225 closed 1.9 per cent lower.
In the BRICS market, there was a mixed performance as three of five indices under our coverage trended southwards. Brazil’s Ibovespa index led laggards, down 6.2 per cent while Russia’s RTS and India’s BSE Sens indices also lost 3.3 per cent and 1.9 per cent w/w respectively. On the flip side, China’s Shanghai Composite gained 5.4% w/w, supported by government’s stimulus and strategies to curtail the epidemic. In South-Africa, FTSE/JSE All Share rose 1.7 per cent w/w despite the recession recorded in fourth quartet of 2019.
In Africa, the bearish performance continued as four of six markets under our coverage recorded losses. Mauritius’ SEMDEX emerged the top laggard, down 5.9 per cent w/w while Egypt’s EGX30 trailed, falling 5.1 per cent w/w. Likewise, Morocco’s Casablanca MASI and Ghana’s GSE Composite indices fell 4.1 per cent and 1.1 per cent w/w respectively. On the flip side, Kenya’s NSE 20 and Nigeria’s All Share Index gained 2.7 per cent and 0.2 per cent respectively.
In Asia and the Middle East, performance was mixed albeit negatively skewed as three of five indices closed in the red w/w. UAE’s ADX General Index led laggards, down 5.3per cent, followed by Qatar’s DSM 20 and Saudi Arabia’s Tadawul ASI which declined 2.5 per cent and 2.1 per cent w/w respectively. On the flip side, Turkey’s BIST 100 index advanced 3.4 per cent due to a cease fire in Northern Syria as a deal was struck by the presidents of Russia and Turkey. Finally, Thailand’s SET Index closed the week 1.8 per cent higher.
