NGX Sees Intraday Loss as GTCO, ACCESS, FCMB Fall
The equities market is trading negative during early trading hours on the Nigerian Exchange (NGX). Stockholders are basically offloading their banking stocks. The negative trading direction according to brokers, was spurred by the interest rate hike to 27.50% by the monetary authority.
Investors believe that the surge would trigger further yield repricing in the fixed income market. According to some analysts, equities investors seeking to balance risks could rebalance portfolios to take advantage of elevated yields in the fixed income market.
Banking names have become targets in the cash conversion process, with most selloffs seen in Tier-1 lenders. At midday, the NGX All Share Index trended negatively, reflecting a loss of -0.37%, Alpha Morgan Capital Limited said in note.
Stockbrokers stated that this bearish trend is due to the selling pressure of investors on some mid- to high capitalised stocks. Trading record from the Nigerian Exchange revealed that ARADEL has lost 9.49% during the intraday session.
On the banking side, FCMB, which lost 2.70% of its market value, is the top loser at the moment. GTCO is down by 0.94% as service disruption triggered negative sentiment.
UBA has lost 0.94% of its market value, while ACCESSCORP has already shed 0.22%. The market is likely to end the day on a negative note, analysts said. #NGX Sees Intraday Loss as GTCO, ACCESS, FCMB Fall Naira Plummets to N1690/$ after CBN Priced Spot Rate High
