Analysts call for caution on investment decisions
The decision by the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC), to maintain status quo for the tenth consecutive session triggered renewed profit-taking at the Nigeria Stock Exchange (NSE) yesterday, causing investors’ wealth to dip by N93 billion.
The Committee retained the Monetary Policy Rate (MPR) at 14 per cent, Asymmetric corridor around the MPR at +200/-500 basis points, Cash Reserves Ratio (CRR) at 22.5 per cent, and Liquidity Ratio (LR) at 30 per cent.
Specifically, the ASI shed 256.72 absolute points or 0.70 per cent to close at 36,455.24 points. Also, the market capitalisation declined by N93billion to close at N13.206trillion.
The decline was occasioned by losses recorded in medium and large capitalised stocks, amongst which were Beta Glass, Presco, Lafarge Africa, Nigerian Breweries, and PZ Cussons Nigeria.
Analysts at APT Securities and Funds Limited, said: “With the return of the index to the red zone, we advise investors to tread with caution with respect to equities market continuous wave between the North and South poles.”
Market breadth closed negative, with 16 gainers versus 29 losers. Cutix recorded the highest price gain of 10 per cent to close at N3.63 per share. Custodian Investment followed with a gain of 9.91 per cent to close at N6.10, while Wapic Insurance appreciated by 4.76 per cent to close at 44kobo per share.
Cement Company of Northern Nigeria (CCNN) rose by 4.42 per cent to close at N26, while Regency Alliance Insurance gained 4.17 per cent to close at 25kobo per share.
On the other hand, Beta Glass, and Lafarge Africa led the losers’ chart by 10 per cent each, to close at N72.90 and N29.25, respectively, while Presco followed with a decline of 9.98 per cent to close at N59.55 per share.
PZ Cussons Nigeria declined by 9.82 per cent to close at N15.15, and FCMB Groups shed 9.50 per cent to close at N1.81 per share.
However, the total volume traded appreciated by 67.37 per cent to 378.7 million shares worth N4.42billion, traded in 4,551 deals. Transactions in the shares of Med-View Airlines topped the activity chart with 100.01 million shares valued at N210.51million.
Transnational Corporation of Nigeria (Transcorp) followed with 45.5 million shares worth N54.29million, while Zenith Bank traded 42.72 million shares valued at N988.52million.
FBN Holdings traded 36.01 million shares valued at N332.35million, while Access Bank transacted 20.51 million shares worth N205.87million.