NSE Reacts Negative as Monetary Authority Holds Key Rates

NSE Reacts Negative as Monetary Authority Holds Key Rates

The Nigerian Stock Exchange (NSE) reacts negative with sell-offs as monetary authority holds key policy rates after two days demanding deliberations.

Profit-takings activities in the market knocked off N9.4 billion from stock market capitalisation, thus widened year to date losses.

As noted, price declines in ZENITH (-2.2%), ETI (-5.9%) and FLOURMILL (-2.4%) dragged performance in the market.

Consequently, the benchmark index declined 5 basis points to 38,704.97 points, as year to date loss worsened to -3.9%.

Following the loss recorded, market capitalisation settled at ₦20.3 trillion.

Trading activity improved as volume and value increased 48.0% and 96.0% respectively to 410.4 million units and ₦6.0 billion.

The most traded stocks by volume were DANGSUGAR (107.1 million units), UBN (78.5 million units) and TRANSCORP (31.6 million units).

Meanwhile DANGSUGAR (₦1.8 billion), GUARANTY (₦832.3 million) and STANBIC (₦499.8 million) led by value.

In its market report, Afrinvest stated that performance across sectors under its coverage universe was bullish as 4 indicators gained.

The Insurance index led the gainers, up 0.6% following price uptick in WAPIC (+10.0%) and MANSARD (+1.0%).

Also, the Oil & Gas and Consumer Goods indices appreciated 0.3% and 0.1% respectively on the back of gains in OANDO (+1.6%) and NIGERIAN BREWERIES (+2.1%).

Afrinvest hinted however that buying interest in MTNN (+0.1%) drove a 6 basis points gain in the AFR-ICT index.

On the flip side, sell-offs in ZENITH (-2.2%) and ETI (-5.9%) pushed the Banking index lower by 0.7% while the Industrial Goods index closed flat.

Investor sentiment, as measured by market breadth weakened to 1.0x from the 3.3x recorded previously as 19 stocks gained against 20 decliners.

WAPIC (+10.0%), CAP (+10.0%) and NPFMCRFBK (+9.9%) were the top gainers while LIVESTOCK (-9.5%), CHAMS (-8.7%) and CORNERST (-6.7%) were the top decliners.

“We expect a mix of bargain-hunting and profit-taking in the local bourse in subsequent trading sessions”, Afrinvest stated.

Read Also: Nigerian Debt Market Records Heavy Sell-offs, Bond Yields Rise

NSE Reacts Negative as Monetary Authority Holds Key Rates