The Nigerian stock market witnessed a 0.40% decline in response to the latest Consumer Price Index (CPI) figures released by the National Bureau of Statistics, triggering sell-offs among investors.
At the close of trading on Monday, the All-Share Index and market capitalization dipped by 0.40%, settling at 104,663.34 points and N59.18 trillion, respectively.
Market analysts at Arthur Stevens Asset Management Limited attributed the bearish performance to increased sell-offs.
The National Bureau of Statistics reported on Friday that the inflation rate for February 2024 surged to 31.70%, up from 29.90% in the previous month, marking a 9.79% increase from February 2023. Both food and core indices rose to 37.92% and 25.13%, respectively.
Projections suggest that inflation may continue its upward trajectory as the naira weakens against the dollar. Additionally, challenges such as heavy reliance on imports in the manufacturing sector and ongoing insecurity contribute to disruptions in the supply chain.
Despite the market downturn, trading activity saw a significant increase. The number of deals surged by 40.58% to 9,077, while volume and value of traded shares rose by 32.34% and 115.75%, respectively, reaching 287.45 million shares and N10.8 billion.
Market sentiment remained positive, with 27 gainers led by ABC Transportation, NEM Insurance, and Livestock, which gained 9.86%, 9.77%, and 9.68%, respectively.
On the flip side, there were 17 losers, with McNichos, Daar Communications, and real estate firm UPDC leading the losses at -9.30%, -8.97%, and -7.89%, respectively.
The day’s trading was dominated by banking stocks in terms of volume, with United Bank for Africa, Guaranty Trust Holding Company, Zenith Bank, FBN Holdings, and AccessCorp leading the pack.
