NGX Slumps as Investors React to Aggressive Rate Hike

The Nigerian Exchange (NGX) slumped on Tuesday as equities investors reacted negatively to aggressive interest rate hikes by the Central Bank. The market opened negative with N51 billion loss on Monday following a raft of selling rallies that started last week.

Again, negative trading activities dragged the market lower, and performance indicators dipped by – 1.39% as investors weighed the impacts of higher interest rates on fixed income assets.

According to stockbrokers, the latest downturn was due to sell-offs across major market sectors, led by the Banking sector, which declined by -3.35%. Apex Bank raised the benchmark interest by 400 basis points to 22.75%.

Data from the Nigerian Exchange showed that All-Share Index) decreased by 1,412.32 basis points today, representing a drop of -1.38% to close at 100,582.89.

In its market update, Atlass Portfolios Limited told investors that quantity traded on the exchange reduced. Total volume and total value traded decreased by -4.71% and -8.97% respectively.

It was noted that approximately 280.46 million units valued at ₦6,120.28 million were transacted in 9,141 deals. TRANSCORP was the most traded stock in terms of volume, accounting for 15.84% of the total volume of trades.

The company was followed by ACCESSCORP (10.90%), UBA (9.46%), ZENITHBANK (8.90%), and NASCON (4.92%) to complete the top 5 on the volume chart.  NASCON was the most traded stock in value terms, with 14.61% of the total value of trades on the exchange.

AFRIPRUD topped the advancers’ chart for today with a price appreciation of 9.86 per cent, trailed by OMATEK with (+9.86%) growth, JULI (+9.73%), TANTALIZER (+8.11%), ELLAHLAKES (+8.07%), STERLINGNG (+4.55%), and four others.

Twenty-seven stocks depreciated, according to market updates. FBNH and MULTIVERSE were the top losers, with a price depreciation of -10.00% each.  Also on loser chart are MTNN (-9.94%), JAPAULGOLD (-9.27%), NASCON (-7.73%), NAHCO (-6.19%), and ACCESSCORP (-3.49%).

Based on the trading pattern, the market breadth closed negative, recording 10 gainers and 27 losers. In addition, the market sector performance was negative.

Today, four out of the five major market sectors closed in red. The Banking sector dropped by -3.35%, followed by a 2.19% dip in the Insurance index. The Consumer goods sector also lost -0.17% and the Industrial sector went down by 0.05%. Meanwhile, the Oil & Gas sector closed flat.

Overall, the equities market capitalisation lost ₦772.99 billion, representing a decline of -1.38%, to close at ₦55.04 trillion. #NGX Slumps as Investors React to Aggressive Rate Hike

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