FX Crunch Trending On Investors’ Hunt For Growth Stocks
ISMAIL MUSA
The foreign exchange (FX) liquidity crunch will continue to trend this week as investors pitch for valued investments
This is predicated on loss last week by the Nigerian stocks on rising COVID-19 cases in the country another factor for the persisting low FX iiquidiity.
The NSE All-Share Index and Market Capitalization both depreciated by 1.99 per cent to close the week at 24,336.12 and N12.695 trillion respectively.
For the five trading sessions of the week, the equities market closed bearish on three sessions, while it ended green on two sessions, Monday and Wednesday.
The loss was driven by selloffs in BUACEMENT which dipped by 2.3 per cent, MTNN by -1.3 per cent, UNILEVER by -18.8 per cent and the banking stocks.
Accordingly, the Month-to-Date and Year-to-Date losses printed -0.6 per cent and -9.3 per cent, respectively.
Weeks sectoral performances were negative, with the NSE Banking index dipping by -7.5 per cent, Industrial Goods index by -6.4 per cent, Insurance index by -2.2 per cent, Oil & Gas index by -1.2 per cent and Consumer Goods index y -0.5 per cent, recording weekly losses.
The total turnover of 961.833 million shares worth N9.181 billion in 20,058 deals were traded during the week by investors on the floor of the Exchange, in contrast to a total of 739.375 million shares valued at N8.563 billion that exchanged hands in the prior week in 17,248 deals.
A total of 4,590 units of bonds valued at N5.515million were traded in the week in 14deals compared with a total of 9,284 units valued at N10.180 million transacted in the preceding week in 8deals.
All other indices finished lower, 13 equities appreciated in price during the week, lower than 18 equities in the previous week. 59 equities depreciated in
Analysts maintained that, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. “Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”’ noted Cordros research.
On Friday, the last trading session of the week, the NSE All Share Index declined by 0.16 per cent , driven by sustained bearish activity.
The local bourse closed the week southwards as its All Share Index (ASI) declined marginally by 0.16% amid sustained profit taking activity. Also, the number of losers (27) outweighed the number of gainers (9) at the close of the trading session. Hence, the year to date loss of the NSE ASI rose to 9.33%. Sentiment remained negative in the market as sell pressure on NB, JBERGER, UACN and ACCESS suppressed their respective share prices by 5.68%, 7.56%, 10% and 2.31%.
Similarly, most of the sub-sector gauges closed negative, save the NSE Banking index which rose by 0.32%. The NSE Insurance,NSE Consumer
Meanwhile, the volume and value of stocks traded dipped by 19.88%and 17.59%02 to 0.14 billion units and N1.
Also on Friday, the Nigerian Interbank Ordered Rate (NIBOR) declined for most tenor Buckets amid Sustained Liquidity Ease. NIBOR and NITTY declined for most tenor buckets amid sustained liquidity ease.
In the OTC bonds market, the values of FGN bonds were flattish for most maturities tracked; however, FGN Eurobond rose for most maturities
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