NGX Equities Investors Fall Short Of N89bn As Inflation Worsens

Stock Exchange Closes Trading Week With N30bn Gain

The Nigerian Exchange (NGX) fell by more over N89 billion on Monday as inflation increased. According to stockbrokers, the recent spike in Nigeria’s headline inflation has driven the market’s performance down by 0.24%.

Despite economic uncertainty, the Nigerian Exchange gained nearly N410 billion last week to end the week in the green, with four positive finishes and one negative session.

However, the market fell on Monday. Profit-taking in medium- and large-cap stocks drove the decline in stock market capitalization. Atlass Portfolios Limited informed investors in its market update that the stocks market saw significant selloffs in STANBIC, OANDO, and VITAFOAM, among other companies.

According to statistics office data, inflation reached 26.72% in September 2023, 92 basis points more than the previous month’s reading of 25.80%. At the end of the trading session, the stock market’s year-to-date performance had softened to 30.80%, which was still ahead of annual inflation at the present reading.

According to a spate of investing businesses, the market index, or the Nigerian Exchange All-Share Index, fell by 162.76 basis points, or -0.24%, to settle at 67,037.93.

Stockbrokers observed a decrease in trading market activity, citing statistics from the local exchange. The day’s total volume and total value traded fell by 3.57% and 14.73%, respectively. In 5,965 transactions, about 216.07 million units worth $3,551.20 million were transferred, Atlass Portfolios told investors citing data from the domestic bourse.

UBA was the most traded stock in terms of volume, accounting for 15.10% of the total volume of trades. The Pan African lender was followed by FIDELITYBK (13.41%), AIICO (7.23%), DANGSUGAR (4.89%), and TRANSCORP (4.86%) to complete the top 5 on the volume chart.

DANGSUGAR was the most traded stock in value terms, with 18.53% of the total value of trades on the exchange. ROYALEX topped the advancers’ chart with a price appreciation of 8.51 per cent. The Insurance company was trailed by CHIPLC (6.96%), NASCON (+5.45%), FLOURMILL (+4.20%), DANGSUGAR (+3.13%), and fourteen others.

Twenty-two stocks depreciated. On the list were SOVRENINS and STANBIC as the top losers, with a price depreciation of 10.00% each. OKOMUOIL lost 9.96% of its market value followed by OANDO which bumped by 9.24%. The share price of ETERNA declined by 8.05%, CADBURY shed 6.67% and CUSTODIAN fell by 2.78%

Given the trading direction, the market breadth closed negative, recording 19 gainers and 22 losers. Also, the market sector performance closed negative, as three of the five major market sectors were down.

The Insurance sector dropped by 0.44%, followed by a 0.27% slowdown in the Oil and gas index, and the Industrial sector declined by 0.06% while the Banking and Consumer goods sector grew by +0.94% and +0.39% respectively.

Overall, equities market capitalisation plunged by ₦89.42 billion, representing a decline of -0.24%, to close at ₦36.83 trillion from ₦36.92 trillion last week Friday.

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