On Tuesday, the Nigerian Exchange (NGX) saw a sharp decline as equity investors reacted unfavorably to the nation’s rising inflation rates. According to the National Bureau of Statistics, the consequences of subsidy elimination caused the consumer price index to increase to 24.08% in July from the 22.79% reported in June.
As a result, the market performance indicators decreased by -0.43%, and stockbrokers attributed the decline to medium- and large-scale sell-offs. Profit-taking actions were specifically seen around ETERNA, FBNH, and 29 other companies.
The market index, also known as the All-Share Index, dropped today by 281.51 basis points, or -0.43%, to settle at 64,928.98. Then, the total return for the year slowed to 26.69%.
However, market activities closed higher, though bears dominated activities. Total volume and total value traded increased by +8.27% and +10.48% respectively. Stock market traders at Atlass Portfolios Limited said in its market update that approximately 280.47 million units valued at ₦4,645.35 million were transacted in 6,296 deals.
TRANSCORP was the most traded stock in terms of volume, accounting for 13.01% of the total volume of trades. The conglomerates was followed by UBA (8.29%), ACCESSCORP (6.30%), STERLINGNG (5.70%), and JAPAULGOLD (4.07%) to complete the top 5 on the volume chart.
Meanwhile, MTNN was also the most traded stock in value terms, with 20.94% of the total value of trades on the exchange. TANTALIZER topped the advancers’ chart with a price appreciation of 10.00 percent. The quick restaurant service counter was followed by IKEJAHOTEL (9.82%), CORNERST (+9.30%), TIP (+8.82%), LINKASSURE (+8.33%), and fourteen others.
Thirty-one stocks depreciated as inflation pressure stoked portfolio rebalancing. ETERNA was the top loser, with a price depreciation of -9.86%, to close at ₦16.00. UNILEVER (-7.05%), AIICO (-5.63%), UACN (-4.63%), DANGSUGAR (-4.35%), and FTNCOCOA (-2.43%) also dipped in price.
Due to the local bourse’s behavior, the market breadth concluded negatively, with 19 gainers and 31 losers. Furthermore, market sector performance ended in the red.
Four out of the five major market sectors were down, according to stock brokers. The Consumer goods sector (-0.68%), the Oil & Gas sector (-0.40%), the Banking sector (-0.08%), the Industrial sector (-1.16%), and the Insurance sector (+1.32%) were all in decline.
Overall, the market value of shares fell by 153.29 billion, or -0.43%, to end at 35,356.6 trillion from 35,509.89 trillion yesterday.
