The market opened for four trading days this week as the federal government declared Monday 3rd October 2022 a public holiday to mark Nigeria’s 62nd Independence Anniversary.
Equity
It was a busy week for the Nigerian stock market as a total of 586.939m shares worth N8.837 billion were traded in 17,183 deals last week by investors on the floor of the Exchange, in contrast to a total of 1.005 billion shares valued at N10.406 billion that exchanged hands last week in 17,844 deals.
The Financial Services Industry (measured by volume) led the activity chart with 393.814 million shares valued at N4.660 billion traded in 9,168 deals; thus contributing 67.1% and 52.73% to the total equity turnover volume and value respectively.
The ICT Industry followed with 48.178 million shares worth N1.203 billion in 1,294 deals.
The third place was the Conglomerates Industry, with a turnover of 40.135 million shares worth N44.406 million in 513 deals.
Trading in the top three equities namely Guaranty Trust Holding Company Plc, Sterling Bank Plc and Zenith Bank Plc. (measured by volume) accounted for 239.637 million shares worth N3.546 billion in 4,375 deals, contributing 40.83% and 40.13% to the total equity turnover volume and value respectively.
ETP
A total of 1,667 units valued at N264,986.25 were traded this week in 19 deals compared with a total of 5,937 units valued at N21.716 million transacted last week in 18 deals.
Bonds
A total of 4,649 units valued at N4.768 million were traded this week in 16 deals compared with a total of 35,327 units valued at N35.758 million transacted in 21 deals last week.
Index movement
The NGX All-Share Index depreciated by 3.41% to close the week at 47,351.43 while market capitalization depreciated by 2.50% to close at N25.791 trillion. Similarly, all other indices finished lower with the exception of the NGX ASeM, NGX Growth and NGX Sovereign Bond indices which closed flat.
Summary of price changes
Summary of price changes showed that eleven equities appreciated in price during the week, lower than 25 equities in the previous week.
Forty-six equities depreciated in price higher than thirty three in the previous week, while 100 equities remained unchanged higher than 98 equities recorded the previous week.
Large selloffs still dominate equity market
Meanwhile, losses recorded by Airtel Africa, MTN Nigeria Communication, Nigerian Exchange Group, and others pulled the market by 1575.81bps at the close of trading on Thursday.
The NGX All-Share Index declined by 3.23% to close at 47,260.89 index points against the last trading session. In Naira terms, the NGX Market CAP records a N858.3bn loss with the NGXASI YTD return at +10.64%. Airtel Africa’s share price dropped by -10% from N2000 to N1800 per share.
The newly listed company, Geregu Power, recorded the highest price gain of 9.91% to close at N120.90 per share.
Sectoral performance was largely negative as the NGX MAIN BOARD index topped the losers’ chart with a decline of -5.06%.
Analysts believe the winter season in the equity market will continue as inflation expectation weighs on investors’ interest in the market.
Elsewhere, it was no different as the European markets closed lower on Friday to round out a volatile week, as global investors reacted to a key monthly jobs report out of the United States.
The pan-European Stoxx 600 index provisionally ended down 1.1%, with all major bourses and the majority of sectors trading in the red.
Tech stocks plunged 4.2 per cent to rank as the worst performing sector of the day. Industrial stocks as well as construction and material companies both shed 2.2 per cent.
Oil and gas stocks were the sole outlier Friday, ending the day in the green, up 1.1 per cent.
Friday’s payrolls report showed the U.S. economy added 263,000 jobs in September, slightly below a consensus forecast of 275,000 from economists polled by Dow Jones. However, the unemployment rate slid to 3.5 per cent from 3.7 per cent in August, signaling a strengthening jobs market even as the U.S. Federal Reserve hikes interest rates in order to cool the economy and stem inflation.
The reading will increase bets on a more aggressive monetary policy tightening trajectory ahead of the Fed’s next meeting in November. U.S. Treasury yields jumped following the data release.
Markets in Asia-Pacific retreated on Friday, with Hong Kong’s Hang Seng index leading losses, while U.S. stock futures also pulled back in premarket trade. Major U.S. averages closed lower during regular trading on Thursday but are still on course for their best week since June 24.
Shares of beleaguered Credit Suisse jumped 6 per cent in afternoon deals Friday on the back of news that it had offered to buy back up to 3 billion Swiss francs ($3.03 billion) of debt securities.
It comes after the Swiss bank’s shares briefly hit an all-time low earlier this week, and credit default swaps reached a record high.
U.S. stocks opened lower Friday as Wall Street digested September’s job report.
The Dow Jones Industrial Average was down 1 per cent in early deals while the S&P 500 was 1.3 per cent lower. The Nasdaq Composite slid 1.75 per cent after a stronger-than-expected employment data pointed to further interest rate hikes.
Tech giants’ revenues expected to drop in Q3
Technology giants Samsung and AMD have projected a decline in profit for the third quarter of 2022. Samsung estimates its quarterly profit to slump by 32 per cent, while AMD’s revenue estimates for the third quarter were about $1 billion less than previously forecasted. This came from the global rise in memory chip prices due to weakening consumer demand for electronics. Analysts believe that the recent drop in the demand for PCs reflects the deteriorating macroeconomic condition as consumers focus on basic commodities for survival.
Binance suspends operations on the BSC hub
In an earlier post on Twitter, Binance reported an exploit of 2 million tokens of Binance coin (BNB), equivalent to $568 million. It was also stated that the attacker attempted to transfer funds from the BSC blockchain to the Ethereum, Fantom, and Arbitrum blockchains, for which Binance has suspended activities linked to its cross-chain bridge of the BSC token hub. The BSC token hub facilitates cross-chain transactions between the Binance smart chain and the BNB beacon chain. To quell fear among investors and validators, the CEO- Changpeng Zhao, stated that funds are secure and the company is presently working with its security team to freeze the movement of stolen funds. Analysts noted that after the news of the exploit broke out, the Price of Binance coin (BNB) fell -3.37% from $296.03 to $280.59.
