Investors’ Wealth Declines by N289bn as Banking Index Sinks
Equities investors’ combined wealth declined by about N289 billion due to selloffs in the banking index. The market started trading negatively last week amidst expectations that monetary policy would increase the benchmark interest rate in March.
With the bearish outing in the local bourse, key performance indicators plunged further on Monday, down by -0.49%. The bourse’s negative performance was due to profit-taking in some recently appreciated stocks, Atlass Portfolios Limited said in its market update.
Stockbrokers noted that equities investors also traded cautiously in anticipation of the monetary policy meeting outcome amid hot red headline inflation conditions. The market index, also known as the All-Share Index, fell by 511.02 basis points at the end of the trading session, or -0.49%, to close at 104,136.35.
As investors’ attention turned to higher interest rates in the fixed income market, market activity declined once more, according to data from the Nigerian Exchange. Trading results from the local bourse showed that the day’s total value traded and volume traded decreased by -20.04% and -39.27%, respectively.
Stock analysts explained in their notes that approximately 306.82 million units valued at ₦11,383.20 million were transacted in 9,343 deals.
JAIZBANK was the most traded stock in terms of volume, accounting for 8.54% of the total volume of trades. UBA (7.21%), NB (6.43%), ACCESSCORP (5.64%), and STERLINGNG (5.48%) completed the top 5 on the volume chart, following the increase in transactions by Islamic lenders.
MTNN was the most traded stock in value terms, with 35.61% of the total value of trades on the exchange. ELLAHLAKES topped the advancers’ chart with a price appreciation of 10.00 percent. Following these high achievers were MORISON (+9.93%), SUNUASSUR (+9.48%), CAVERTON (+9.38%), NSLTECH (+9.09%), SOVRENINS (+9.09%), and fourteen more. Thirty stocks depreciated, according to data cited by stockbrokers.
DANGSUGAR and INTENEGINS were the top losers, with a price depreciation of -10.00% each,. These stocks top losers were followed by JAIZBANK (-9.92%), IKEJAHOTEL (-9.72%), TRANSCORP (-8.41%), JAPAULGOLD (-4.93%), and ACCESSCORP (-1.67%). Given the trading direction experienced at the beginning of the week, the market breadth closed negative, recording 20 gainers and 30 losers.
Nevertheless, the market’s sectoral performance ended on par. The insurance and industrial sectors increased by +0.21% and +0.04%, respectively, while the banking and consumer goods sectors fell by -1.72% and -0.83%. The oil and gas industry closed unaltered.
The Nigerian Exchange’s overall equity market capitalization decreased by ₦288.93 billion, closing at ₦58.88 trillion. #Investors’ Wealth Declines by N289bn as Banking Index Sinks Benchmark Interest Rate on Nigerian Bonds Increases to 19.21%
