NGX Falls As Investors React To Aggressive Rate Increase

Stock Exchange Closes Trading Week With N30bn Gain

Due to investors’ unfavorable reaction to the Central Bank’s aggressive interest rate rises, the Nigerian Exchange (NGX) fell on Tuesday. Monday’s market opened lower, losing N51 billion, after a wave of selling rallies that began last week.

Once more, negative trading activity pulled the market down, and as investors considered how increased interest rates might affect fixed income assets, performance indicators fell by -1.39%.

Stockbrokers claim that sell-offs in all main market sectors were the cause of the most recent slump, with the banking sector declining by -3.35%. The benchmark interest rate was increased by 400 basis points to 22.75% by Apex Bank.

The All-Share Index fell by 1,412.32 basis points today, or -1.38%, according to data from the Nigerian Exchange.

In its market update, Atlass Portfolios Limited told investors that quantity traded on the exchange reduced. Total volume and total value traded decreased by -4.71% and -8.97% respectively.

It was noted that approximately 280.46 million units valued at ₦6,120.28 million were transacted in 9,141 deals. TRANSCORP was the most traded stock in terms of volume, accounting for 15.84% of the total volume of trades.

The company was followed by ACCESSCORP (10.90%), UBA (9.46%), ZENITHBANK (8.90%), and NASCON (4.92%) to complete the top 5 on the volume chart. NASCON was the most traded stock in value terms, with 14.61% of the total value of trades on the exchange.

AFRIPRUD topped the advancers’ chart for today with a price appreciation of 9.86 per cent, trailed by OMATEK with (+9.86%) growth, JULI (+9.73%), TANTALIZER (+8.11%), ELLAHLAKES (+8.07%), STERLINGNG (+4.55%), and four others.

Twenty-seven stocks depreciated, according to market updates. FBNH and MULTIVERSE were the top losers, with a price depreciation of -10.00% each. Also on loser chart are MTNN (-9.94%), JAPAULGOLD (-9.27%), NASCON (-7.73%), NAHCO (-6.19%), and ACCESSCORP (-3.49%).

Based on the trading pattern, the market breadth closed negative, recording 10 gainers and 27 losers. In addition, the market sector performance was negative.

Today, four out of the five major market sectors closed in red. The Banking sector dropped by -3.35%, followed by a 2.19% dip in the Insurance index. The Consumer goods sector also lost -0.17% and the Industrial sector went down by 0.05%. Meanwhile, the Oil & Gas sector closed flat.

Overall, the equities market capitalisation lost ₦772.99 billion, representing a decline of -1.38%, to close at ₦55.04 trillion.

Leave a Reply