Equities Investors Lose N519bn as CBN Turns Hawkish
The equities investors in the Nigerian Exchange (NGX) shaved off their portfolios of stocks in a new selling rally as Central Bank (CBN) monetary policy turns hawkish after more than two years of dovish stance.
In a negative reaction, investors offloaded the portfolios, perhaps on an expectation of yield repricing in the fixed income space. Today, the average yield on fixed income instruments rose moderately, traders’ notes show.
Following the selloff in the domestic bourse, the Nigerian All-Share Index dipped 961.87 basis points, representing a 1.82 per cent decline to close at 51,949.64 points.
Overall, the equity market inched lower by ₦518.55 billion, closed at ₦28.01 trillion. However, the market activities were bullish, as the total volume and value rose significantly by 173.48 per cent and 149.79 per cent, respectively.
In a market report, Stockbrokers at Atlass Portfolios Limited said approximately 720.19 million units valued at ₦8.87 billion were transacted in 6,096 deals. ETI emerged as the most traded stock in terms of volume, accounting for 35.91 per cent of the total volume of trades, followed closely by JAIZBANK (10.87%), ACCESSCORP (8.44%), UACN (7.27%), and MANSARD (3.59%).
Similarly, ETI was the most traded stock in value terms, with 33.45 per cent of the total value of trades on the exchange. JAPAULGOLD topped the advancers’ list with a price appreciation of 10.00 per cent each.
The company was trailed closely by MRS (9.70%), WAPIC (4.76%), FCMB (2.94%), CAP (1.90%), NGXGROUP (0.67%), STANBIC (0.29%), SEPLAT (0.01%) and nine (9) others.
Market data shows that thirty-eight (38) stocks depreciated, topped by GUINNESS with a price depreciation of 10.00 per cent to close at ₦88.2. MTNN dropped 7.63%, VITAFOAM lost 5.06%, FBNH declined by 3.35% and GTCO shaved off 2.13%.
Also, UCAP declined by 1.10%, DANGCEM knocked off 1.00%, OANDO share price pulled back 0.81%, FOURMILL fell 0.54% and ZENITHBANK tumbled by 0.21%. READ: Bond Market Down 26% on CBN Hawkish Balance Sheet Policy
The market breadth was largely negative, recording 17 gainers and 38 losers, according to data from the local bourse with the sectoral performance ended on a bearish note. READ: Local Investors Deepen Equity Market as Foreign Portfolios Exit
NGX’s five sectors closed negatively compared to the previous session, led by the Consumer Goods (-1.21%), Insurance (-1.09%), Industrial Goods (-0.61%), Banking (-0.39%) and Oil & Gas (-0.32%), respectively. #Equities Investors Lose N519bn as CBN Turns Hawkish
