The market’s unfavorable reaction to the interest rate hike caused the Nigerian Exchange’s (NGX) stock market to lose more than N68 billion on Wednesday, compounding the loss from the previous day.
According to an update from investment firm CardinalStone Securities Limited, the bad outturn was caused by selloffs in GTCO (-0.11%), UBA (-5.07%), and FBNH (-1.60%), which outweighed the increase in WAPCO (+0.82%).
Atlass Portfolios Limited stockbrokers said that the market index, also known as the All-Share Index, closed at 100,365.17, down 120.95 basis points, or -0.12%.
The selling that was seen in the banking and consumer goods sectors today amid high interest rates and inflation was a major drawback to the trading session.
However, market activities inched higher, data from the Nigerian Exchange showed. Total volume and total value traded for the day increased by +77.22% and +137.35%, respectively.
Stockbrokers said in an email note that approximately 497.84 million units valued at ₦8,605.26 million were transacted across 8,412 deals. FCMB was the most traded stock in terms of volume, accounting for 26.91% of the total volume traded in the market.
Other volume drivers include: ACCESSCORP (14.63%), ZENITHBANK (12.07%), UBA (5.84%), and UNIVINSURE (4.61%). ZENITHBANK emerged as the most traded stock in value terms, with 25.42% of the total value of trades on the exchange.
INTBREW and SOVRENINS topped the advancers’ chart with a price appreciation of 10.00 percent each, trailed by DEAPCAP (+9.80%), TIP (+7.50%), FCMB (+5.26%), OMATEK (+4.48%), TANTALIZER (+4.35%), and ten others.
Twenty-one stocks depreciated in the market today due to weak investors’ sentiment. NSLTECH was the top loser, with a price depreciation of -9.43%.
Other decliners include RTBRISCOE (-8.22%), UBA (-5.07%), LIVESTOCK (-4.56%), UCAP (-4.57%), and DANGSUGAR (-3.70%). Given the trading direction, the market breadth closed negative, recording 17 gainers and 21 losers.
On sectoral performance, the Banking (-0.82%) and Consumer Goods (-0.22%) indices closed in negative territory due to bearish sentiments in UBA (-5.07%) and DANGSUGAR (-3.70%), respectively.
Insurance (+0.38%) and industrial goods (+0.03%) closed in the green from demands in SOVRENINS (+0.00%) and WAPCO (+0.82%), respectively. The oil and gas index closed flat for the third consecutive session. Overall, the equities market capitalization of the Nigerian Exchange lost ₦68.49 billion, representing a drop of -0.12%, to close at ₦56.83.
