Wednesday 24 August 2022

WEEKLY NIGERIN EQUITY MARKET UPDATE ON AUGUST 20, 2022

The Nigerian equity market declined 0.4% as the benchmark index closed at 49,370.62 points. Consequently, the Year-To-Date (YTD) return of the market weakened to 15.6% from 16.0% the previous trading day.
 
Across market indices under our purview, there was mixed performance as three indices posted green while two indices posted red. The Banking, Insurance and Consumer Goods indices gained 23bps, 13bps and 6bps respectively. We attribute the gains to buyers interest in JAIZBANK (+5.9%), AIICO (+3.6%) and DANGSUGAR (+1.8%). Furthermore, the Industrial Goods and Oil and Gas indices declined by 32bps and 15bps respectively, and their losses can be attributed to investors selloffs in WAPCO (-4.0%) and ARDOVA (-2.7%). 
 
Top gainers in today's trading session were led by JAIZBANK (+5.9%), AIICO (+3.6%) and ACADEMY (+1.2%), while UPL (-9.9%), IMG (-9.7%) and JAPAULGOLD (-9.4%) emerged as today's biggest losers.
 
For today's trading activities, the total volume and value traded declined by 10.0% and 38.6% to 132.2mn to ₦1.6bn respectively. FBNH, ACCESSCORP and UBA led the volume chart with 37.7mn units, 15.4mn units, and 9.3mn units respectively. On the other hand, FBNH, GTCO and ZENITHBANK led the value chart by ₦418.6mn, ₦181.2mn and ₦155.1mn respectively.
 
Quick Insights
Jaiz Bank has produced outstanding results over the past couple of years, clearly showing the company's goal to becoming one of the most profitable banks in Nigeria. The bank’s fiscal year report showed a 32.1% increase in its total income from N15.8 billion in 2020 to N20.9 billion in 2021. In prior years, the bank's total income also showed an upward trend of 216.8% in 2014, 52.4% in 2015, 8.9% in 2016, 34.2% in 2017, 5.7% in 2018, 72.9% in 2019, 34.0% in 2020, and 32.1% in 2021.
 
In similar fashion, total expenditures for the years in discussion increased year-on-year, rising by 27.2% from N2.0 billion in 2013, 35.6% from N2.6 billion in 2014, 30.2% from N3.5 billion in 2015, 18.4% from N4.6 billion in 2016, 14.0% from N5.4 billion in 2017, 38.8% from N6.1 billion in 2018, 13.8% from N8.6 billion in 2019, and 31.6% from N9.7 billion in 2020.
 
Daily Currency Updates
On daily currency update, I&E and the parallel market's prices closed at ₦429.38US$1.00 and ₦680/US$1.00 respectively. The current P2P Forex market price is ₦682.90/US$1.00. Nigeria's external reserves closed at US$38.90bn.
 
Weekly Recap
In this week's trading session, the Nigerian Equities market experienced a mixed performance as two indices gained while three indices posted green week-to-date (WTD). The local bourse closed at 49,370.62 points as against opening at 49,546.38 points, with WTD and MTD declined by 59bps and 198bps respectively. Moreover, the Year-to-Date (YTD) return of the market gained 15.58% or 1,558bps. The market's capitalisation closed at N26.6 trillion losing about 160 billion. We attribute the losses to investors' sell-offs during the week's trade, especially in Insurance (-1.4%), Consumer Goods (-1.0%) and the Oil and Gas (0.8%) sectors respectively.
 
Furthermore, BusinessDay Research and Intelligence Unit (BRIU) findings show the opening and closing values of the following sectors under our purview; Banking index (386.35open – 387.22close), Insurance index (173.72open – 173.95close), Consumer Goods index (601.57open – 601.91close), Oil and Gas index (553.49open – 552.68close), and Industrial Goods index (1,853.93open – 1,847.98close).
 
Furthermore, the percentage change for these indices under our purview are Industrial Goods and Oil and Gas (+0.2%, +0.03%; +0.9%, -0.1%; +0.0%, -0.2%; -0.5%, -0.1%; -0.3%,-0.2%), while the others are depicted in the attached document.

No comments:

Post a Comment