—–Naira Drops 3.28%

August 9, 2023/Research & Strategy

Futureview Financial Services

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Equities Market

The local stock market concluded the mid-week session with a downward trajectory, as bearish sentiment persisted, resulting in widespread selling pressure. The overall weak performance prompted the NGX All-Share Index (NGXASI) to experience a 175 basis points decline, settling at 64,167.39 points at the session’s closure, compared to Tuesday’s closing level of 65,309.65 points.

The Market’s performance was driven by investors profit-taking in bellwether stocks amongst which were; DANGCEM (-9.09%), NASCON (-10%), MTN (-1.43%), ETERNA (-4.14%), GLAXOSMITH (-7.94%), FBNH (-1.12%) and 21 other stocks.

As a corollary, the Year-to-Date return declined to 25.20%. In turn, the Market Capitalization decreased to N34.92 trillion, marking a 1.75% decline, which led to a reduction on investors’ wealth by N621.60 billion. 

Market activity was negative as volume and value traded decreased by 25.10% and 41.48% to settle at 238.04 million units and N2.62 billion, respectively.

The Market Breadth, which measures investor sentiment through the Gainers/Losers ratio, decreased to 0.89x from 1.21x, as 24 stocks appreciated, 27 stocks depreciated and 67 stocks closed flat.

We anticipate a rebound in the coming session driven by favorable buying opportunities.

Currency Market

The Nigerian Naira depreciated by 3.28% against the US Dollar in the I&E Window, closing at a rate of N782.38/USD.