Equities Investors Lose N89bn as Inflation Worsens
The Nigerian Exchange (NGX) plunged by more than N89 billion on Monday as the inflation rate worsened. The spate of increase in Nigeria’s headline inflation dragged the market performance lower by 0.24%, according to stockbrokers.
Last week, the Nigerian Exchange gained about N410 billion to close the week in the green, recording 4 positive closes and one bearish session despite uncertainties in the economy.
The market however retreated on Monday. The reduction in stock market capitalisation was propelled by profit-taking in medium- and large-scale stocks. The equities market recorded marked selloffs in STANBIC, OANDO, VITAFOAM among others, Atlass Portfolios Limited told investors in its market update.
Data from the statistics office showed that inflation hit 26.72% in September 2023, 92 basis points above 25.80% print in the comparable month in August. At the close of the trading session, the stock market year to date moderated to 30.80%, still ahead of annual inflation at the current reading.
The market index or the Nigerian Exchange All-Share Index plunged by 162.76 basis points, representing a decrease of -0.24% to close at 67,037.93, a slew of investment firms said in their updates.
Citing data from the local exchange, stockbrokers reported that trading market activities went down. The total volume and total value traded for the day dropped by 3.57 % and 14.73% respectively. Approximately 216.07 million units valued at ₦3,551.20 million were transacted in 5,965 deals, Atlass Portfolios told investors citing data from the domestic bourse.
UBA was the most traded stock in terms of volume, accounting for 15.10% of the total volume of trades. The Pan African lender was followed by FIDELITYBK (13.41%), AIICO (7.23%), DANGSUGAR (4.89%), and TRANSCORP (4.86%) to complete the top 5 on the volume chart.
DANGSUGAR was the most traded stock in value terms, with 18.53% of the total value of trades on the exchange. ROYALEX topped the advancers’ chart with a price appreciation of 8.51 per cent. The Insurance company was trailed by CHIPLC (6.96%), NASCON (+5.45%), FLOURMILL (+4.20%), DANGSUGAR (+3.13%), and fourteen others.
Twenty-two stocks depreciated. On the list were SOVRENINS and STANBIC as the top losers, with a price depreciation of 10.00% each. OKOMUOIL lost 9.96% of its market value followed by OANDO which bumped by 9.24%. The share price of ETERNA declined by 8.05%, CADBURY shed 6.67% and CUSTODIAN fell by 2.78%
Given the trading direction, the market breadth closed negative, recording 19 gainers and 22 losers. Also, the market sector performance closed negative, as three of the five major market sectors were down.
The Insurance sector dropped by 0.44%, followed by a 0.27% slowdown in the Oil and gas index, and the Industrial sector declined by 0.06% while the Banking and Consumer goods sector grew by +0.94% and +0.39% respectively.
Overall, equities market capitalisation plunged by ₦89.42 billion, representing a decline of -0.24%, to close at ₦36.83 trillion from ₦36.92 trillion last week Friday. #Equities Investors Lose N89bn as Inflation Worsens Naira Devaluation Deepens Economic Crisis in Nigeria