Market Return Sinks over Sustain Selloffs on NGX
The equities market segment of the Nigerian Exchange (NGX) year-to-date return sinks below 20% after peaking at about 27% due to fresh selloffs triggered by an interest rate adjustment by the Central Bank of Nigeria. Today, the local bourse falls by N550 billion as investors take profit.
The decision of the monetary policy committee to increase the benchmark policy rate by 150 basis points cause fixed income market yield repricing, thus, money appears to be moving into the space.
Opening the week on a negative note, the domestic bourse experience yet another profit-taking in bellwether stocks, supported by price down in mid-cap companies’ shares. Lagos bourse sees a 10% decline in DANGCEM after seven trading days of staying flattish, leading to a 2.0% decline in the benchmark index.
Thus, the Nigerian Exchange All-share index (ASI) settled at 50,756.74 points while the month-to-date loss settled negative at -4.2%, while the year-to-date return moderated to +18.8%. READ: Naira Sinks, Treasury Yield Falls, Bonds Trade Flattish
The total volume traded declined by 43.0% to 345.00 million units, valued at N3.07 billion, and exchanged in 5,075 deals, according to data from the Nigerian Exchange. Trading data also showed that Tier-2 lender FCMB was the most traded stock by volume and value at 177.59 million units and N668.97 million, respectively.
Performance across sectors was broadly negative, as the Industrial Goods declined by 5.3%, Consumer Goods fell 1.2%, and Insurance slow down by 0.9%. On the other hand, Oil & Gas indices closed in the red, while the Banking index advanced by 0.1%.
As measured by market breadth, market sentiment was negative (0.2x) as 30 tickers lost relative to 6 gainers. DANGCEM and Union Bank of Nigeria (UBN) shed 10.0% of their respective valuations respectively.
Meanwhile, JAIZBANK’s share price jumped 5.3% and REGALINS tracked higher by 3.7% to top the most significant gains of the day. # Market Return Sinks over Sustain Selloffs on NGX
