The stock market’s performance index closed 0.08 per cent weaker on Tuesday as investors reacted negatively to the Central Bank of Nigeria’s (CBN) hike in the Monetary Policy Rate (MPR).
BRANDPOWER reports that CBN’s Monetary Policy Committee (MPC) earlier announced another increase in the country’s MPR by 50 basis points to 26.75 per cent, from 26.25 per cent.
Dr Yemi Cardoso, the CBN Governor, made this known while presenting the communiqué from the 296th meeting of the MPC.
CBN raises MPR by 50 basis points, despite soaring inflation
Cardoso said the decision was in response to continued inflationary pressures.
He noted that it was important to deal with inflation, as the apex bank was concerned about the impact of inflation on ordinary Nigerians and businesses.
In a prediction, analysts at Cowry Asset Management Ltd. had stated that the outcome of the MPC meeting, along with other economic news, could stir mixed sentiments in the capital market.
The analysts said market players would be closely analysing these developments to understand their potential impact on investments.
Specifically on trading, the Nigerian Exchange Ltd. (NGX) market capitalisation, which opened at N56.945 trillion, shed N47 billion or 0.08 per cent to close at N56.898 trillion.
The All-Share Index also dropped 0.08 per cent or 83 points to settle at 100,486.12, against 100,568.60 recorded on Monday.
As a result, the Year-To-Date (YTD) return declined to 34.39 per cent.
Sell-offs in Tier-one banking stocks, namely: Zenith Bank, Access Corporation, FBN Holdings, United Bank for Africa (UBA), and United Capital, among other declined equities, dragged the market down.
Also, market breadth closed negative with 27 losers and 14 gainers on the floor of the Exchange.
On the losers’ table, UPL led by 9.92 per cent to close at N2.27, and John Holt trailed by 9.87 per cent to close at N2.83 per share.
Omatek lost 9.46 per cent to close at 67k per share, Deap Capital Management and Trust declined by 8.93 per cent to close at 51k and Secure Electronic Technology Plc shed 7.02 per cent to close at 53k per share.
Conversely, Ikeja Hotel led the gainers table by 6.60 per cent to close at N7.10, Linkage Assurance followed by 6.90 per cent to close at 93k per share.
Caverton advanced by five per cent to close at N1.47, Sovereign Trust Insurance gained 4.17 per cent to close at 50k and Consolidated Hallmark Plc added 2.96 per cent to close at N1.39 per share.
Analysis of the market activities indicated that trade turnover settled lower relative to the previous session, with the value of transactions down by 2.46 per cent.
A total of 280.92 million shares valued at N3.63 billion were exchanged in 8,403 deals,compared to 335.70 million shares valued at N3.72 billion exchanged in 8,760 deals posted previously.
Meanwhile, Veritas Kapital led the activity table in volume with 22.51 million shares worth N23.03 million, followed by UCAP with 20.85 million shares worth N817.10 million to lead the table in value.
Jaiz Bank traded 20. 78 million shares valued at N45.11 million, Access Corporation transacted 20.40 million shares worth N394.32 million and Prestige Assurance sold 16.81 million shares worth N8.6 million.
NGX – Innovation driven market
Nigerian Exchange (NGX), a wholly owned subsidiary of the Nigerian Exchange Group (NGX Group), is a leading listing and trading venue in Africa with its history dating back to 1960. It is an open, professional, and vibrant exchange, connecting Nigeria, Africa, and the world.
NGX is a multi-asset exchange providing a home to the best of African enterprises listed on our Premium, Main, and Growth Boards; diverse fixed income securities; Exchange Traded Products (ETPs); Mutual and other investment funds. Through our vibrant secondary market, we provide domestic and international investors access to these securities. In addition, NGX provides licensing services, market data solutions, ancillary technology services, and more in our quest to be Africa’s preferred exchange hub.
At NGX, we deploy innovative capital market solutions that provide a globally competitive platform for Issuers to raise capital, and investors to meet their financial objectives across markets and geographies while maintaining a seamless flow of information. We prioritise outstanding customer service and experience, creating loyal and delighted clients and stakeholders by elevating our ecosystem and providing a portfolio of globally competitive products and services which help our customers achieve their financial ambitions. NGX is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (“SEC”) of Nigeria.
