Nigerian Bourse Tanks as Inflation Fears Worsen
Again, the equities segment of the Nigerian Exchange, NGX, tanks as the market weighs the impacts of rising inflation rate pressures on naira assets in the local bourse. Due to sustained selloffs, the Nigerian bourse’s year-to-date return moderated further.
Key performance indicators plunged as retail and institutional investors continued to adjust their equities investment portfolios downward amidst rising yields in the fixed income market.
Data from the Nigerian Exchange show that the All-share index dropped by 0.02%, keeping year-to-date return at 2.6% at the time when headline inflation galloped to 21, 09% in October 2022, according to the statistics office.
The Nigerian Exchange All-share index declined by 9.87 basis points to close at 43,808.25 points, away from the 44,000 psychological level. Profit-taking dragged the equities market capitalisation fell ₦5.38 billion to close at ₦23,861.17 trillion from ₦23,866.55 trillion yesterday, according to a market report.
Meanwhile, activities level slowdown was down amidst the selling rallies. Total volume and total value traded for the day were reduced by -44.70% and -53.20% respectively. READ: NASD OTC Market Tanks as UBN Property, CSCS, Friesland Plunge
Citing data from the stock exchange, Atlass Portfolios Limited said approximately 103.47 million units valued at ₦1,186.58 million were transacted in 3,045 deals. FBNH was the most traded stock in terms of volume, accounting for 11.01% of the total volume of trades recorded on the exchange.
The tier-1 lender was followed by TRANSCORP (10.94%), FIDELITYBK (10.00%), ACCESSCORP (8.44%), and GTCO (5.77%) to complete the top 5 on the volume chart.
BUAFOODS was the most traded stock in value terms, with 18.68% of the total value of trades on the exchange, according to stockbrokers’ market reports. CWG and LEARNAFRCA both topped the advancers’ chart with a price appreciation of 10.00 percent.
The duo was trailed by CAVERTON which appreciated by 8.75%. Again, PRESTIGE rallied with 8.33% share appreciation on Tuesday.
There was JAPAULGOLD on the gainers’ chart with a 7.41% share price gain while ACADEMY rose by 6.84% apart from the other nine companies’ shares that were upbeat. The local bourse trading data show that thirteen stocks depreciated, topped by WAPCO with a price depreciation of -9.66% to close at ₦20.10.
Royal Exchange Plc lost 9.41%, trailed closely by 9.09% price depreciation recorded in Cornerstone Insurance. UPDCREIT was down by 8.93%, followed by FTNCOCOA with 8.82% share price decline- the company recently announced a plan to issue shares to cancel debts.
CHAMS plunged by 8.00% and ACCESSCORP weakened by 0.61% while market breadth closed positive, recording 15 gainers and 13 losers.
Today’s stock market sector performance was positive, as three out of the five major market sectors were up, led by the Consumer goods sector (+0.38%), the Oil & Gas sector (+0.30%), and the Banking sector (+0.24%).
The Insurance and Industrial sectors were down by -1.10% and -0.65% accordingly, stockbrokers’ notes showed. # Nigerian Bourse Tanks as Inflation Fears Worsen