August 1, 2023/Research & Strategy

Futureview Financial Services

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Equities Market

The local stock market concluded the trading session on a bearish note, with a continuation of negative sentiment prevailing among investors, resulting in significant sell-offs across prominent stocks. Consequently, the benchmark NGX All-Share Index experienced a further decline of 23 basis points, settling at 64,192.20 points, compared to its previous session at 64,337.52 points.

The market’s downturn was primarily influenced by investors’ selling pressure on major stocks, including GUINNESS (-8.26%), FCMB (-6.07%), GTCO (-3.14%), ACCESSCORP (-2.35%), ZENITHBANK (-1.18%), and 32 others.

As a result, the Year to Date (YTD) return decreased to 25.25%, indicating a moderation in the market’s overall performance. Additionally, the market capitalization witnessed a slight decrease of 0.23%, closing at N34.93 trillion, which led to a substantial reduction in investors’ wealth by N79.08 billion.

Market activity for the day appreciated as volume and value traded rose by 13.17% and 19.09% to 762.10 million units and N7.71 billion.

MARKET BREADTH: (Gainers/Losers ratio), which measures investor sentiment, increased to 0.59x from 0.39x in the prior session as 22 stocks appreciated, 37 stocks depreciated while 59 stocks closed flat.

We anticipate bears to dominate the week, as we see investors pulling out from some stocks with poor half year performance.

Currency Market

The Nigerian Naira depreciated by 4.25% against the US Dollar in the I&E Window, closing at a rate of N789.08/USD.