Together, the three financial institutions were involved in 4,913 deals totaling 447.125 million shares valued at N6.488 billion. This contributed to the overall equity turnover volume and value, which were 26.72% and 298.85%, respectively.
Due to selloffs in Geregu (-7.2%) and Stanbic (-13.1%), local stocks had finished the week lower. Consequently, the market capitalization dropped by N156 billion to close at N36.764 trillion, while the All-Share Index decreased by 0.42 percent week over week (w/w) to close at 66,915.41 points.
As a result, the year-to-date returns (YTD) and MTD both moderated to +0.8% and +30.6%, respectively. The sectoral performance, however, painted a mixed picture, with gains in the Banking (+3.5%) index and losses in the Insurance (-1.0%), Consumer Goods (-0.5%), and Industrial Goods (-0.1%) indices. The Oil and Gas index closed flat elsewhere.
The loss was not unexpected given that last week's global stock market meltdown was brought on by worries about a possible escalation of the Israel-Hamas conflict in the Middle East. The risk-off mood was also exacerbated by the Federal Reserve Chairman's hawkish remarks regarding the likelihood of additional interest rate increases and weak corporate earnings. As a result, investors reacted negatively to a spike in the 10-year Treasury yield, inconsistent corporate earnings reports, and hawkish comments from the Federal Reserve Chairman, which dominated US trading (DJIA: -0.8%; S&P 500: -1.2%).
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Investors lost money when they realized that the Federal Government's retained revenue for the first seven months of 2023 was N4.83 trillion, which was 3.9% less than the prorated budget of N5.03 trillion. In addition, headline inflation reached its highest point since August 2005, rising by 92 basis points to 26.72 percent y/y in September.
As a result, investors traded 1.496 billion shares worth N24.284 billion in 29,298 deals on the Exchange floor, compared to 1,470 billion shares worth N24.431 billion that were traded in 29,683 deals last week.
With 1.047 billion shares worth N12.709 billion traded in 13,667 deals, the Financial Services Industry led the activity chart when measured by volume. This industry contributed 69.99 percent and 52.34%, respectively, to the total equity turnover volume and value.
In 1,982 deals, the ICT Industry came in second with 94.997 million shares valued at N1.445 billion. In third position was the Conglomerates Industry, with 1,459 deals totaling 80.655 million shares valued at N526.409 million.
Market analysts responded to the market's performance by stating that they believe the ongoing Q3 earnings will influence the direction of the upcoming trading week. They reaffirmed that investors should continue to hold positions in only stocks that are fundamentally justified because the weak macro environment continues to be a major drag on corporate earnings.
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