Stock Selloffs Persist as Market Expects MPC to Keep Rates
Following a bearish outturn in the equity market last week, the Nigerian Exchange (NGX) opens the week on a negative note as investors lost N17 billion.
Consequently, key performance indicators track lower while year to date returns moderate amidst an expectation that the CBN policy committee would sustain benchmark interest rate.
Reacting to this, market decline in reaction to selling rallies in twenty two listed companies’ stocks in the financials and Industrial goods sectors, according to stockbrokers at Atlass Portfolios Limited.
Market data shows that the Nigerian Exchange (NGX) All-Share Index shed 30.74 basis points representing 0.07 per cent depreciation, to close at 47,251.93.
Today, equity market capitalisation inched lower by ₦16.56 billion, representing a decline of 0.06 per cent to close at ₦25.48 trillion following the dividend price adjustment of UBA Plc from ₦8.65 to ₦7.85 per unit, Atlass Portfolios said.
Signifying a weak investing temperature, the market activities were bearish, as the total volume and value dipped by 64.38 per cent and 30.17 per cent, respectively.
Approximately 213.57 million units valued at ₦2.68 billion were transacted in 4,485 deals, according to stockbroker’s notes. ACCESS led as the most traded stock in terms of volume, accounting for 12.73 per cent of the total volume of trades.
This was followed closely by ZENITH BANK (9.33%), UBA (8.77%), GTCO (8.62%) and TRANSCORP (7.08%) to complete the top five on the volume chart.
NGX chart indicates that ZENITH BANK emerged as the most traded stock in value terms, with 19.98 per cent of the total value of trades on the exchange. On the profitability chat, GUINNESS topped the advancers’ chart with a maximum price appreciation of 10.00 per cent.
The beer producer was trailed by MBENEFIT (8.00%), LIVESTOCK (5.62%), FIDELITYBK (2.33%), ZENITHBANK (1.31%), NGXGROUP (0.85%), OANDO (0.40%), DANGSUGAR (0.32%) and seven (7) others.
According to trading data, twenty-two (22) stocks depreciated, led by RTBRISCOE with a maximum price decline of 10.00 per cent to close at ₦0.72.
BERGER’s share price dipped 9.64%, UACN lost 4.92%, and ETERNA fell 2.86%, HONYFLOUR declined by 1.88% while TRANSCORP was price down by 1.75%. READ: Selloffs in Banking Stocks Drag Nigerian Exchange Lower
Also, the CUSTODIAN share was down 1.41%, UBA lower by 1.27%, UCAP knocked off 1.20% from its opening price today, while Lafarge WAPCO share price depreciated 0.21% and GTCO pull back by 0.19%.
Trading data indicated that the market breadth closed negative, recording 15 gainers and 22 losers while sectoral performance closed on a bearish note.
Sector performance shows that three of the five major sectors closed negative compared to the previous session, led by Banking (-0.91%), Insurance (-0.71%) and Industrial Goods (-0.01%), respectively. On the other hand, the Consumer Goods and Oil & Gas sectors rose by 0.46% and 0.01%, respectively.
