…Analyst predicts gloomy outlook on global instability
Following renewed bargain hunting in 23 stocks, transactions on the Nigerian Exchange Limited (NGX) reopened in an upward note, yesterday, as market capitalisation appreciated by N36 billion.
In summary, the All-Share Index (ASI) grew by 66.11 absolute points, representing an increase of 0.14 per cent to close at 47,394.53 points while the overall market capitalisation value gained N36 billion to close at N25.543 trillion.
Market gain was driven by price appreciation in large and medium capitalised stocks amongst which are; Okomu Oil, Lafarge Africa, Ecobank Transnational Incorporated (ETI), International Breweries and UAC of Nigeria (UACN).
Analysts at GTI Securities Limited said, “The week kicks off with an extension of the bullish trend from the previous week, fuelled by positive sentiments as a result of surging oil prices boosting the country’s attractiveness to investments. We expect this trend to be maintained all through the week.”
Vetiva Dealings and Brokerage said: “With cross trades and corporate disclosure boosting today’s session, we expect to see market pick up from the positive close as investors continue to cherry pick attractive names across board.”
Market sentiment, as measured by market breadth, closed positive as 23 stocks advanced against 15 stocks that declined. Linkage Assurance recorded the highest price gain of 10 per cent to close at 55 kobo, while Royal Exchange followed with a gain of 9.60 per cent to close at N1.37 kobo.
SUNU Assurance and Regency Alliance Insurance appreciated by 7.69 per cent each to close at 42 kobo each, while Niger Insurance rose by 7.14 per cent to close at 30 kobo.
On the other hand, Academy Press led the losers’ chart by 9.69 per cent to close at N1.77 kobo. R.T. Briscoe Nigeria followed with a decline of 9.57 per cent to close at 85 kobo, while Jaiz Bank declined by 5.19 per cent to close at 73 kobo, per share.
Vitafoam Nigeria shed 4.90 per cent to close at N22.30, while Africa Prudential depreciated by 4.76 per cent to close at N7.00, per share.
The total volume of trades rose by 18.7 per cent to 283.885 million units, valued at N2.532 billion, and exchanged in 5,278 deals. Transactions in the shares of FCMB Group topped the activity chart with 104.414 million shares valued at N323.595 million. Transnational Corporation of Nigeria (Transcorp) followed with 15.259 million shares worth N18.624 million, while Zenith Bank traded 13.814 million shares valued at N373.923 million.
R.T. Briscoe Nigeria traded 12.647 million shares valued at N11.592 million, while ETI transacted 11.786 million shares worth N145.067 million.
Meanwhile, the Vice President of Highcap Securities Limited, David Adonri has stated that the fundamentals of the Nigerian capital market will succumb to the disruptions inflicted on the global economy by the brutal invasion of Ukraine by Russians in the near future.
Adonri, while reacting to the closure of the Moscow stock exchange yesterday, following Russia’s invasion of Ukraine, which triggered massive sanctions from several other countries that have sent the ruble plummeting to record lows against the dollar, stated that the disruption in the global economy would impact negatively on the stock market soon, in addition to the heightened political risk arising from buildup to 2023 general election.
He said that though Nigeria will benefit from the attendant rise in crude oil price, the gains are likely to be lost to the imported inflation due to import dependence.
The unprovoked, barbaric and tyrannical invasion of Ukraine by Putin, is a big threat to the stability of the global economy. So far, global Capital Markets have declined considerably in reaction to the devilish onslaught by the Russian vampire. Even the Russian Capital Market narrowly escaped collapse just after the invasion.
“It is not surprising that the Russian Stock Exchange was closed down today in order to save the market from irretrievable damage. Even the Russian currency is at the verge of collapse due to repercussions of the war. Commodity prices are also escalating, exacerbating the already heightened global inflation rate. “
Trading activities at the Moscow stock exchange remained closed down yesterday, following Russia’s invasion of Ukraine, which triggered massive sanctions from several other countries that have sent the ruble plummeting to record lows against the dollar. Specifically, the ruble fell about 30% against the dollar yesterday, making it worth less than 1 U.S. cent.
