Equities Investors Lose N26bn as Banking Index Slips
Equities investors lost about N26 billion in the stock market on Thursday as the Central Bank maintains 27.50% interest rate benchmark. The Nigerian Exchange, NGX, closed negatively following market reactions to the monetary authority’s decision to keep all parameters unchanged.
Some analysts predicted the positive real return on fixed interest securities will drive investment into the segment as interest rate surpass inflation. Inflation fell, but interest rate environment remained tight, upturning the negative interest yield trend in the financial market.
Major tickers that fell include ARADEL (-2.72%), ACCESSCORP (-2.18%), NB (-2.86%), FIDELITY (-2.63%) and GTCO (-0.72%) followed by some lightweight listed companies.
Hence, year to date return moderated, as key market performance indicators dropped by 0.04%. According to data from the Nigerian Exchange, the All-Share Index decreased by 41.01 basis points to close at 108,568.50.
However, the market activities were mixed today, as the total volume traded in the local bourse increased by 22.56%, while the total value transactions conducted dropped by 2.40%.
In a note, Atlass Portfolios Limited told investors that approximately 421.26 million units valued at ₦8,424.71 million were transacted across 13,269 deals.
In terms of volume, ELLAHLAKES led the activity chart, accounting for 32.54% of the total volume of traded in the market, followed by ZENITHBANK (5.47%), GTCO (4.96%), JAIZBANK (4.14%), and UBA (3.88%), rounding out the top five.
GTCO emerged as the most traded stock in value terms, accounting for 15.54% of the transactions on the exchange.
ABBEYBDS topped the advancers’ chart for with a price appreciation of 10.00 percent, trailed by UPL (+9.78%), SOVRENINS (+9.57%), REGALINS (+7.58%), TIP (+7.23%), SMURFIT (+7.14%) and twenty-six others.
Twenty-four stocks depreciated, according to details obtained from the Nigerian bourse. UNIONDICON was the top loser, with a price depreciation of – 9.77%. Other decliners include IKEJAHOTEL (-5.56%), AFRIPRUD (-3.70%), NB (-2.86%), ARADEL (-2.72%), and ACCESSCORP (-2.18%).
Today, the market breadth closed positive, recording 32 gainers and 24 losers. The sectoral performance was positive, as three of the five major market sectors were up.
The Oil and Gas (-1.03%) and Commodity (-0.50%) indices closed negative, stemming from selloffs in ARADEL (-2.72%), while the Banking (-0.68%) index declined due to sustained selloffs in ACCESSCORP (-2.18%).
Conversely, the Consumer Goods (+0.69%), Insurance (+0.53%), and Industrial Goods (+0.01) indices closed positive, driven by buying interest in BUAFOODS (+1.83%), SOVRENINS (+9.57%), and BETAGLAS (+4.88%), respectively.
Overall, the equities market capitalisation of the Nigerian Exchange fell by ₦25.55 billion, representing a drop of 0.04%, to close at ₦67.66 trillion. #Equities Investors Lose N26bn as Banking Index Slips#
MPC Keeps Benchmark Interest Rate at 27.50%
