The bears kicked off the trading week as the NGX ASI dipped 0.1% to 44,399.66 points following sell-offs in BUAFOODS (-6.4%), UBA (-1.2%), and WAPCO (-0.8%). Consequently, YTD return weakened to 3.9% while market capitalisation shed ₦29.6bn to ₦23.9tn. Volume and value traded dampened 47.2% and 72.6% respectively to 214.3m units and ₦2.7bn. TRANSCORP (39.3m units), FBNH (25.5m units), and GTCO (24.8m units) led by volume while GTCO (₦625.1m), ZENITHBANK (₦533.0m), and FBNH (₦306.0m) led by value.
Across sectors within our coverage, performance was mixed as 2 indices gained, 3 lost while the AFR-ICT index closed flat. The Oil & Gas and Consumer Goods indices were up 0.9% and 0.2% respectively driven by buying interest in ETERNA (+7.0%), OANDO (+0.4%), and HONYFLOUR (+0.3%). Conversely, losses in WAPCO (-0.8%) and CUTIX (-2.0%) pulled the Industrial Goods index lower by 2.0%. Also, the Insurance and Banking indices fell 0.2% and 0.1% respectively owing to price depreciation in CORNERST (-7.3%), MBENEFIT (-7.4%), UBA (-1.2%) and GTCO
Investor sentiment, as measured by market breadth (advance/decline ratio), weakened to 0.7x from 0.8x as 15 stocks gained against 22 laggards. SUNUASSURE (+9.7%), ETERNA (+7.0%), and WAPIC (+6.3%) led gainers while VERITASKAP (-8.7%), MBENEFIT (-7.4%), and CORNERST (-7.3%) led decliners. We expect a rebound in the subsequent trading session as investors position ahead of FY:2021 earnings results.
Today, the National Bureau of Statistics (NBS) published the CPI December 2021 report, showing a halt in the disinflation trend after 8 months, as consumer prices rose at a faster pace in December 2021. Precisely, the headline inflation rate rose to 15.6% y/y in December 2021 against 15.4% in November 2021 and 15.8% in December 2020. On a m/m basis, the headline inflation rate rose to 1.8%, the sharpest since May 2017, from 1.1% in the previous month. Overall, average inflation in 2021 printed at 17.0% against 13.2% in 2020. The upswing in headline inflation rate stemmed largely from pressures in the food basket (17.4% y/y in December 2021 vs 17.2% y/y in November 2021). We observed that amid the festivities, price of farm produce surged 2.4% m/m in December 2021 against 0.9% in the prior month. On the other hand, core index maintained its pace from November as inflation rate logged at 13.9% y/y in December 2020. Prices of all component items of the core index save Miscellaneous Goods & Services rose m/m in December 2021.
