WEEKLY EQUITY MARKET UPDATE ON SEPTEMBER 3, 2022

The Nigerian equity market gained 30bps or 0.3% as the NGX-ASI closed at 50,045.83 points. Accordingly, the Year-To-Date (YTD) return of the market strengthened to 17.2% from 16.8% the previous trading day.

 

Across market indices under our coverage, performance was bullish as three indices posted green, one posted red and the Industrial Goods Index closed on a marginal note.

 

The Banking, Insurance and Consumer Goods Indices gained 90bps, 85bps and 40bps respectively. We accredit the gains to buyers' interests in FCMB (+9.1%), AIICO (+3.0%) and NB (+3.3%) respectively. On the other hand, Oil and Gas Index declined by 10bps, and the loss can be attributed to investors' selloffs in ARDOVA (-2.4%).

 

Top gainers in today's trading session were led by FCMB (+9.1%), STANBIC (+6.5%) and ETRANZACT (+6.0%), while MCNICHOLS (-9.5%), RTBRISCOE (-8.6%) and CHAMS (-7.1%) emerged as today's biggest losers.

 

For today's trading activities, the total volume traded and value traded gained 4.8% and 53.0% respectively to 240.0mn units and ₦2.7bn. STERLNBANK, FIDELITYBK and FIDSON led the volume chart with 93.7mn units, 28.7mn units, and 13.8mn units respectively. On the other hand, MTNN, ZENITHBANK and GTCO led the value chart by ₦1.2bn, ₦266.5mn and ₦258.5mn respectively.

 

QUICK INSIGHTS

The gross earnings of FCMB Group Plc show an increase year-on-year. The company recorded revenue of N177.2 billion in 2018, an increase of 4.3% from N169.9 billion in 2017. Similar to 2018 and 2019 in which the company saw increases of 2.3% and 9.5% to N181.2 billion and N198.3 billion, respectively. For the same period in 2021, the revenue increased year-on-year by 6.9% to N212.0 billion.

 

DAILY CURRENCY UPDATES

On daily currency update, I&E and the parallel market's prices closed at ₦430.00/US$1.00 and ₦697/US$1.00 respectively. The current P2P Forex market price is ₦698.99/US$1.00. Nigeria's external reserves closed at US$39.02bn.

 

WEEKLY RECAP

In this week's trading session, the Nigerian equity market experienced a largely bullish performance as all indices under our coverage posted green week-to-date (WTD).

 

The Banking sector closed its value traded at ₦587.4mn, while the Consumer Goods, Industrial Goods, Insurance and Oil and Gas sectorial indices closed their value traded at ₦163.1mn, ₦26.2mn, ₦34.6mn and ₦98.1bn respectively.

 

Furthermore, the local bourse closed at 50,045.83 points as against opening at 49,889.80 points, as WTD gained 73bps. The Month-to-date (MTD) posted green as it gained 42bps, meanwhile the Year-to-Date (YTD) return of the market gained 17.2% or 1,720bps.

 

The market's capitalisation closed at ₦27.0 trillion gaining about ₦196 billion. We attribute the gain to buyers' interests in Banking, Insurance and Consumer Goods sectors.

 

Furthermore, BusinessDay Research and Intelligence Unit (BRIU) findings show the opening and closing values of the following sectors under our purview; Banking index (385.74open – 389.22close), Insurance index (179.26open – 180.79close), Consumer Goods index (601.11open – 603.38close), Oil and Gas index (533.86open – 533.59close), and Industrial Goods index (1,794.65open – 1,794.65close).

 

Furthermore, the percentage change for these indices under our purview are Banking and Insurance (+0.3%, -0.2%; -0.1%, +0.1%; +0.6%, -0.1%; -0.4%, -0.5%; -+0.9%, +0.9%), while the others are depicted in the attached document.