Global Markets
Global equities commenced Q2'24 on a negative footing, a contrast to the predominantly bullish stint of Q1'24. In April, the MSCI World index fell 3.9% MoM, driven by market declines in developed regions (U.S and Europe), which outweighed the positive returns in emerging markets (MSCI EM index: +0.3% MoM).
Nigerian Equities
Investors were badly beaten in local equities, as the benchmark index declined by 6.1% and the market capitalization contracted by N3.5 trillion to N55.5 trillion. Consequently, YtD return moderated to 31.36% as of April's end.
Specifically, the selloffs were primarily concentrated in the Banking (-25.0%) sector, following the major drags in FBNH (-32.8%), GTCO (-37.7%), ACCESSCORP (-31.2%) and UBA (-14.6%) that may have been stoked by negative reactions to the potential dilutive impact of expected capital raises. The Insurance (-6.5%), Consumer Goods (-4.0%), Industrial Goods (-3.2%), and Oil and Gas (-2.0%) sectors also closed in the red due to contractions in AIICO (-12.3%), DANGSUGAR (-25.2%), DANGCEM (-4.4%), and SEPLAT(-2.3%) respectively.
