Nigerian Bourse Closed in Red as Inflation Worsens
The Nigerian Exchange (NGX) for trading listed companies’ stocks traded in red again on Monday as the consumer price index which measures inflation rate worsens after the local bourse shed about N571 billion last week.
The local bourse has been declining, a resultant effect of interest rate hikes. The increased money pricing rate has propelled yield repricing in the fixed income market.
Conservative institutional investors have been repositioning their portfolios amidst rising spot rates on the Nigerian Treasury bills, the yield curve has made an uptrend likewise. Today, despite gains in some of the highly capitalised stocks, the Nigeria equity market nosedived on the first trading session of the week.
The southward move came following the sell-pressure on PRESCO, DANGSUGAR, and 15 others as Nigeria’s inflation rate rose to 19.64% in July – a higher reading seen since September 2005. Consequently, the Nigerian Exchange All-Share Index backtracked 6.74 basis points, translating to a marginal loss of 0.01 per cent, to close at 49,657.33.
In total, the equities segment of the Nigerian Exchange (NGX) market capitalisation lost ₦3.63 billion to close at ₦26.78 trillion in today’s trading session. Likewise, the market activities were bearish, as the total volume and value dipped by 71.90 per cent and 58.78 per cent, respectively.
Citing data from the Nigerian Exchange, stockbrokers at Atlass Portfolios Limited said about 210.84 million units valued at ₦2.19 billion were transacted in 4,122 deals. ETRANZACT emerged as the most traded stock in terms of volume, accounting for 24.93 per cent of the total volume of trades.
The company was followed closely by FBNH (10.95%), UBA (10.39%), GTCO (7.36%), and TRANSACT (6.04%) to complete the top five on the volume chart. GTCO was as the most traded stock in value terms, with 14.44 per cent of the total value of trades on the exchange.
Trading data shows that NEIMETH topped the advancers’ chart with a price appreciation of 9.29 per cent, trailed by ZENITH BANK (2.12%), TRANSCORP (0.93%), ARDOVA (0.80%), MTNN (0.50%), NGXGROUP (0.50%), BUACEMENT (0.47%), STANBIC (0.18%) and four (4) others.
On the flip side, seventeen stocks depreciated, led by PRESCO with a price decline of 9.97 per cent to close at ₦142.6. DANGSUGAR (-4.19%), ACCESSCORP (-2.84%), CUTIX (-2.44%), UCAP (-2.02%), UBA (-0.71%) and GTCO (-0.25%) also dipped in price.
The market breadth was negative, recording 12 gainers and 17 losers while sectorial performance was positive, as all the three major sectors closed bullishly compared to the previous session. READ: Naira Worsens as FX Rates Cross the Rubicon
The Industrial Goods (0.17%), Banking (0.15%) and Oil & Gas (0.03%). While Consumer Goods shed 0.33%, leaving the Insurance sector unchanged. # Nigerian Bourse Closed in Red as Inflation Worsens