Nigerian Exchange Sheds N47bn as Investors React to Rate Hike
Equities investors lost about N47 billion as traders reacted negatively to decision of the monetary policy committee of the central bank to increase benchmark interest rate by 50 basis point to 26.75% today.
The Nigerian Exchange (NGX) closed trading activities for negative, with key performance indicators dropping by – 0.08% as monetary policy tightening extended to second half of 2024.
Consequent to the bearish drive, the market index or All-Share Index reduced by 82.48 basis points today, representing a decrease of -0.08% to close at 100,486.12.
Atlass Portfolios Limited said the local bourse reversed the previous day’s gain, with sell-offs witnessed in some medium and large-scale stocks such as WEMABANK, VITAFOAM, ZENITHBANK, and others.
Market analysts said the downturn came as the Apex bank raised the Monetary Policy Rate (MPR) by 50 basis point to 26.75%. According to information from the NGX, market activities inched lower as the total volume and total value traded reduced by -16.32% and -2.46% respectively.
Atlass Portfolios Limited told investors in an emailed note that approximately 280.92 million units valued at ₦3,625.62 million were transacted across 8,403 deals.
VERITASKAP was the most traded stock in terms of volume. Transactions conducted on the company stock accounted for 8.04% of the total volume of traded.
Other volume drivers include UCAP (7.45%), JAIZBANK (7.43%), ACCESSCORP (7.29%), and PRESTIGE (6.01%) to complete the top 5 on the volume chart.
Stockbrokers noted that UCAP emerged as the most traded stock in value terms, accounting for 22.57% of the total value traded on the exchange on Tuesday.
IKEJAHOTEL topped the advancers’ chart with a price appreciation of 7.58 percent, trailed by LINKASSURE which gained +6.90%. Other gainers include CAVERTON (+5.00%), SOVRENINS (+4.17%), CONHALLPLC (+2.96%), LEARNAFRCA (+2.60%), and eight others.
NGX report showed that twenty-seven stocks depreciated. UPL was the top loser, with a price depreciation of -9.92%. Other decliners include OMATEK (-9.46%), WEMABANK (-3.91%), VITAFOAM (-2.63%), STERLINGNG (-2.50%), and ZENITHBANK (-1.60%).
At the end of the trading session, the market breadth closed negative, recording 14 gainers and 27 losers. In addition, the market sector performance was negative.
Sectoral performance showed that two out of the five major indices went down. The banking index declined by -0.67%, and the Insurance sector lost -0.15%. On the positive side, the consumer goods sector grew by +0.06%. The Industrial and Oil & Gas sectors closed flat.
Overall, the equities market capitalisation of the Nigerian Exchange declined by ₦46.70 billion to close at ₦56.95 trillion. NAICOM Boss Affirms Insurance Sector’s Commitment to Grow $1trn Economy
