Investors Dump Stocks as Market Weighs Interest Rate Hike
The Nigerian Exchange (NGX) drops by N66 billion midweek as investors in the equities market weigh the impacts of another 100 basis points interest rate hike on trading activities. Market data shows that the participants in the domestic bourse held on to their bearish mood as selling pressures persisted.
The sustained downbeat mood dragged the NGX All Share Index down while year-to-date returns reduced to 21.17%. Stockbrokers told MarketForces Africa that the weak outing reported after the Central Bank of Nigeria raised its benchmark interest rate to 14% partly resulted in selloffs as 12 companies gained while 22 made it to the losers’ chart.
Specifically, the market capitalisation opened for trading at N28.208 trillion to close at N28.142 trillion, a decrease of N66 billion or 0.23 per cent. Similarly, the NGX All-Share Index depreciated by 0.23 per cent to settle at 52,186.52 basis points from 52,308.88 basis points it opened for trading.
Also, the market breadth index was negative with 12 gainers against 22 losers. READ: Nigerian Bourse Ends Lower as Investors Dump More Stocks
Computer Warehouse Group (CWG) and Multiverse Mining and Exploration lead gainers’ chat, closing with 9.88 per cent each to close at 89k and N1.78 respectively. Academy Press followed with a growth of 9.68 per cent to close at N2.04. The Initiates Plc (TIP) and RTBriscoe increased by 9.09 per cent each to close at 48k per share, respectively
However, NAHCO led the losers’ chart with 10 per cent to close at N5.40, followed by FTNCocoa that depreciated by 8.57 per cent to close at 32k. Nigerian Breweries was down by 6.13 per cent to close at N49.75 as Consolidated Hallmark Insurance dropped by 5.17 per cent to close at 66k.
In addition, Oando sheds 5.50 per cent to close at N5.15. In terms of activity levels, investors exchanged 238 million units of shares worth N3.336 billion in 3,814 deals. Living Trust Mortgage Bank was the most actively traded 40.91 million units of shares worth N49.09 million, followed by Nigerian Breweries which traded 30.38 million units of shares worth N1.51 billion.
United Bank for Africa (UBA) sold 40.91 million units of shares worth N49.09 million, while Accesscorp traded 21.90 million units of shares worth N199.09 million. Also, FBN Holdings sold 17.86 million units of shares amounting to N196.63 million. # Investors Dump Stocks as Market Weighs Interest Rate Hike
