Selling Rallies Ruffle Stocks Performance amidst Inflation Worries


Selling rallies ruffle Nigerian stocks performance on Thursday amidst inflation expectations for the Month of June 2021. The renewed bearish resulted in N2.9 billion decline as year-to-date losses hit 6%. The National Bureau of Statistics, NBS, is expected to release the inflation figures for June 2021.

Consequent to profit-taking trading activities witnessed today, the Nigerian Exchange All-share index (NGX-ASI) declines marginally by 0.01 per cent as negative sentiments take a turn on the local bourse today.

Specifically, the benchmark index to 37,866.90 points due to sell-offs in NIGERIAN BREWRIES (-3.3%), GTCO (-0.5%) and DANGSUGAR (-4.7%).

However, market breadth remained positive with 18 gainers versus 17 laggards while market capitalization declines N2.9 billion or 0.05 per cent valued at N19.72 trillion.

The volume of stocks traded on the exchange decreased by 18.88 per cent while the value of stocks traded declined by 56.64 per cent.

A total of 159.99 million units of shares valued at N927.85 million, were traded in 3,038 deals.

SOVERNINS led the volume chart, accounting for 9.34 per cent of the total volume of trades, followed by FIDELITYBK (8.43%) WAPIC (7.47%) UPDC (7.03%), and COURTVILLE (6.13%) to complete the top five on the volume chart.

MTN led the value chart accounting for 15.70 per cent of the total value of trade on the exchange. SOVERNINS, FTNCOCOA and CWG topped the gainers’ chart, with their share prices advancing by 10.00 per cent, 9.76 per cent, and 9.65 per cent, respectively.

IKEJAHOTEL led the losers’ table with its share price depreciating by 9.29 per cent to close at N1.27 after opening the day at N1.40.

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Sector Performance

In a market report, Afrinvest said performance across sectors under its coverage was bullish as 4 indices gained, 1 lost while the AFR-ICT index closed flat.

The Oil & Gas and Banking indices gained 0.8% and 0.7% respectively on the back of buying interest in OANDO (+6.3%), ZENITH (+1.2%) and STANBIC (+0.7%).

Similarly, the Insurance and Industrial Goods indices inched higher by 30bps and 4bps respectively due to price appreciation in AIICO (+9.5%) and WAPCO (+0.7%). Conversely, the Consumer Goods index dipped by 0.7% due to selling pressure on INTBREW (-0.9%).

“We expect the domestic equities market to close in the red for the week”, Afrinvest said.


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