NGX Falls Big as FG Made ‘Emergency’ Eurobond Call
This week, the bear took hold on the floor of the Nigerian Exchange (NGX) as equity investors continue selling rallies amidst rising headline inflation and lingering dollar scarcity as well as emergency borrowing by the government.
Nigeria’s $1.25 billion Eurobond raise amidst the Russia-Ukraine war signals fiscal pressures as the interest rate was offered at a premium. Some analysts believe Nigeria is broke as such funds could be raised when there is a limited alternative.
Reacting, the Nigerian bourse witnessed selling rallies as the stock market declined N83.4 billion due to profit-taking. The sell-off dragged the benchmark index down 0.3% this week to settle at 47,282.67 points.
Consequently, year to date return declined to 10.7% from 11.1% while market capitalisation decreased by ₦83.4 billion week on week to ₦25.5 trillion.
Overall, trading activity waned as average volume and value traded declined 12.5% and 13.4% week on week respectively to 489.8 million units and ₦4.1 billion, according to Afrinvest’s market note.
Market data shows that on Friday, the Nigeria equity market closed the last trading session in the red. The All-Share Index shed 70.55 basis points representing 0.15 per cent depreciation, to close at 47,282.67.
Equity market capitalisation lost ₦38.03 billion last day of the week, representing a decline of 0.15 per cent to close at ₦25.48 trillion.
However, the market activities were mixed, as the total volume rose by 150.08 per cent following the huge transaction on ETRANZACT.
Meanwhile, the total value dipped by 1.56 per cent. Atlass Portfolios Limited said in a note that approximately 599.51 million units valued at ₦3.83 billion were transacted in 4,289 deals.
ETRANZACT led as the most traded stock in terms of volume, accounting for 55.23 per cent of the total volume of trades. READ: Bond Market Down 26% on CBN Hawkish Balance Sheet Policy
This was followed closely by FIDELITYBK (7.97%), FBNH (6.13%), ACCESS (4.92%) and UBA (4.70%) to complete the top five on the volume chart.
Also, ETRANZACT emerged as the most traded stock in value terms, with 22.99 per cent of the total value of trades on the exchange. On the profitability chat, PZ topped the advancers’ chart with a price appreciation of 9.55 per cent.
The consumers goods producer was trailed by TRANSCORP (1.79%), UCAP (1.21%), UACN (0.83%), ZENITHBANK (0.76%), FIDELITYBK (0.67%), MTNN (0.24%) and six (6) others.
On the other hand, twenty (20) stocks depreciated, led by MRS with a price decline of 9.96 per cent to close at ₦12.2.
MBENEFIT (-7.41%), ACCESS (-5.77%), BUAFOODS (-3.09%), AFRIPRUD (-1.64%), UBN (-1.61%), NGXGROUP (-1.47%), ETI (-0.42%) and FBNH (-0.42%) also dipped in price. Trading data shows that the market breadth closed negative, recording 13 gainers and 20 losers.
Sectoral performance was bearish, as four of the five major sectors closed negative compared to the previous session, led by Banking (-0.63%), Insurance (-0.48%), Oil & Gas (-0.23%) and Industrial Goods (0.001%), respectively.
However, the Consumer Goods sector rose by 0.07 per cent. #NGX Falls Big as FG Made ‘Emergency’ Eurobond Call
