The Nigerian Exchange (NGX) appear to be isolated from global happenings with its stocks defying global head winds that has humbled stock markets across the world on account of good first quArter financial results.
Concerns around the Ukraine-Russia war, mounting inflationary pressure and rate hike dented investors’ sentiment last week. US inflation rate decelerated marginally to 8.3 per cent year-on-year (y/y) and 0.3 per cent month-on-month (m/m) in April 2022 ahiast the 8.5 per cent y/y and 1.2 per cent m/m in March) – albeit still a 40-year high, said analysts at Aftinvest.
Although the moderating inflation rate suggests cooling, the US Fed is expected to maintain its tightening monetary policy stance. As such, investors’ sentiment remains weak with the US S&P 500 and Nasdaq indices declining 2.4 per cent and 3.0 per cent w/w respectively.
Back to Nigeria, sustained buying interest upheld gains last week as the All Share Index (ASI) up 4.2 per cent week-on-week (w/w).
“Contrary to expectations, sustained buying interest upheld the bulls as the NGX All-Share Index appreciated 4.2 per cent w/w to close at 53,098.46 points”, said Afrinvest. Accordingly, Year-to-Date (YTD) return rose to 24.3 per cent (previously 19.2 per cent) while market capitalisation gained N1.2 trillion w/w to N28.6 trillion.
Activity level dwindled as average volume and value traded fell 32.1 per cent and 17.7 per cent w/w respectively to 361.9 million units and N5.4 billion. The top traded stocks by volume were TRANSCORP (208.9 million units), GTCO (108.9 million units), and ZENITH (66.4 million units) while MTNN (N3.1 billion), GTCO (N2.6 billion), and DANGCEM (N1.8 billion) led by value.
