NGX Loses 0.16% as Investors Dump Financial Stocks

Investors reacted to the hawkish tone of the Central Bank of Nigeria (CBN) at the local stock market on Wednesday by selling off financial stocks.

The apex bank on Tuesday further increased the benchmark interest rate by 1.50 per cent to 26.25 per cent in a bid to tame inflation, which has defied all possible solutions proffered except for insecurity from the food-producing areas of the country.

At midweek, the Nigerian Exchange (NGX) Limited returned to the red territory with a 0.16 per cent loss due to profit-taking in the financial services sector.

Consequently, the All-Share Index (ASI) went down by 156.17 points to 98,129.16 points from 98,285.33 points and the market capitalisation declined by N89 billion to N55.509 trillion from N55.598 trillion.

The banking counter depreciated during the session by 2.01 per cent and the insurance space crumbled by 0.87 per cent as a result of intense selling pressure, which spiked the activity level.

However, the industrial goods index appreciated by 0.18 per cent and the consumer goods sector marginally improved by 0.02 per cent, while the energy counter closed flat.

Investor sentiment was weak yesterday after the bourse recorded 12 price gainers and 28 price losers, representing a negative market breadth index.

The Initiates lost 10.00 per cent to trade at N1.80, Multiverse fell by 9.82 per cent to N12.40, Cornerstone Insurance depreciated by 9.52 per cent to N1.90, Deap Capital shed 9.09 per cent to close at 40 Kobo, and Caverton slumped by 8.45 per cent to N1.30.

Conversely, Tantalizers gained 8.00 per cent to quote at 54 Kobo, Coronation Insurance appreciated by 7.81 per cent to 69 Kobo, Omatek grew by 7.69 per cent to 70 Kobo, Julius Berger gained 7.19 per cent to finish at N85.00, and Lafarge Africa increased by 4.48 per cent to N35.00.

Traders transacted 271.7 million equities worth N5.4 billion in 7,383 deals on Wednesday versus the 222.9 million equities worth N5.2 billion traded a day earlier in 7,228 deals, indicating a rise in the trading volume, value, and number of deals by 21.89 per cent, 3.85 per cent, and 2.14 per cent apiece.

Access Holdings exchanged 35.6 million shares valued at N607.6 million, Zenith Bank traded 35.4 million stocks worth N1.1 billion, GTCO transacted 35.0 million equities for N1.4 billion, UBA sold 31.3 million stocks for N641.2 million, and Transcorp traded 25.4 million equities valued at N285.4 million.

By Dipo Olowookere

Leave a Reply

Your email address will not be published.

You may use these <abbr title="HyperText Markup Language">HTML</abbr> tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>