Stock Market Sheds ₦368bn as Nigeria Bans Crypto Currencies

Stock Market Sheds ₦368bn as Nigeria Bans Crypto Currencies

The Nigerian Stock Exchange (NSE) market declined ₦368 billion this week as Nigerian government bans crypto currencies and ordered banks to close related accounts.

The equities market reversed last week’s bullish momentum with profit-takings activities dominating trades all week.

As a result, the All-Share index fell 1.7% this week against the previous week to 41,709.09 points.

In the same manner, trade data shows that stock market capitalisation fell to ₦21.8 trillion while year to date return plunged to 3.6%.

Activity level improved as average volume and value traded rose 7.4% and 6.4% to 551.9m units and ₦5.9bn respectively.

The most traded stocks by volume were UBN (313.1 million units), FBNH (219.6 million units) and TRANSCORP (199.7 million units).

Meanwhile, GUARANTY with total trade value worth ₦6.1 billion, ZENITH ₦3.5 billion and UBN ₦1.8 billion led by value.

Afrinvest said performance across sectors was lacklustre as all indices under its coverage declined week on week.

The Insurance index lost the most, down 6.0% w/w due to price declines in LINKASSURE (-33.3%) and AIICO (-13.6%).

Similarly, the Consumer Goods and Banking indices recorded losses of 3.2% and 2.3% week on week respectively due to sell-offs in NNFM (-10.6%), FLOURMILL (-9.4%), FIDELITY (-8.1%), and ACCESS (-8.1%).

The Industrial Goods and AFR-ICT indices also declined 2.1% and 0.3% week on week respectively as DANGCEM (-2.5%), WAPCO (-11.2%), and CHAMS (-7.7%) ticked lower.

Then, sell-offs in OANDO (-9.1%) drove the Oil & Gas index lower by 0.2%.

Thus, equities investor sentiment as measured by market breadth weakened to 0.2x from 1.4x last week as 17 stocks gained against the 59 that declined.

ETERNA (+10.6%), NCR (+9.9%) and MULTIVERSE (+9.1%) led the top gainers while LINKASSURE (-33.3%), AIICO (-13.6%) and JBERGER (-13.0%) led the decliners.

“We expect trading sessions to be a mix of bargain hunting and sustained profit-taking activities.

“The direction of yields in the fixed income market would also influence trades especially given the increase in marginal rates at the open market operations auction this week”, Afrinvest stated.

Profit-takings Knocked Off ₦22.9 Billion from Nigerian Stock Market

Stock Market Sheds ₦368bn as Nigeria Bans Crypto Currencies