From the trader's desk...
It was a positive day in the equity market, as the All-Share index closed the year on a positive note advancing by 216bps to settle at 42,716.44 points. The green close was largely driven by gains in NESTLE (+10.00%), MTNN (+824bps), DANGSUGAR (+545bps), and ACCESS (+220bps), while WEMABANK (-886bps), CHAMPION (-408bps), UBN (-248bps), and TRANSCORP (-303bps) saw price declines. Despite the short trading session, activity levels improved, as volume traded increased by 26% to 455m units, while value traded grew significantly by 435% to ₦9.8 billion, with NESTLE accounting for 48% of the total turnover and banking stocks dominating activity charts. Speaking to this week's sectoral performance, the consumer goods sector saw a significant rebound, as the NGXCNSMRGDS index led the pack with a 669bps gain, while the industrial sector finished last with a 391bps loss WTD. due to compared to the 229bps loss recorded last week. Finally, market breadth stayed positive at 2.0x, after 30 stocks rose and 15 fell.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The equity market witnessed a largely mixed performance despite the impressive and resilient earnings posted across various sectors. The bearish sentiment in the market this year could be attributed to higher interest rates in the fixed income space compared to prior year, increased participation in alternative asset classes and reduced foreign portfolio investments due to the foreign exchange challenges. We expect to see similar market sentiments filter into the first quarter of 2022, given the lack of suitable catalysts to boost activity.
Stocks to Watch
On the bid Cart: NESTLE closed the week as the joint-top gainer with a 10.00% capital gain to settle at ₦1,556.50. The consumer goods company returned 3.42% YTD, slightly outperforming the sector which gained 2.78% YTD.
On the Offer Cart: WEMABANK was the biggest loser today, falling 8.86% to close the session at ₦0.72. Thus, reducing the banking stock's YTD profit to single digit (4.35%).
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