Sell-offs In Guinness, AXA Mansard, Others Push Equities Market To N518.55bn Dip
The bearish sentiment towards equities continued Tuesday on the floor of the Nigerian Exchange Limited (NGX) as key market indicators closed negative.
The NGX’s All-Share Index (ASI) and market capitalization lost 1.82 per cent, representing 961.87 index points and N518.55 billion respectively.
The sharp decline of the stock market comes as the CBN announced a hike in the benchmark interest rate.
Monetary Policy Committee at its meeting on Tuesday, raise the monetary policy rate (MPR), which measures interest rate, to 13 per cent to tame rising inflation. The CPI was 16.82 per cent at April.
The committee also retained the asymmetric corridor at +100 and -700 basis points around the MPR and liquidity ratio at 30 per cent.
However, during Tuesday’s trading session on the NGX, the ASI closed at 51,949.64 basis points down from 52,911.51 basis points, while the market capitalization of all listed equities on the Nigerian Bourse settled at N28.01 trillion compared to N28.525 trillion recorded the previous session.
The negative trend of the market was triggered by profit-taking occasional by sell-offs in large and medium scale brands like Guinness Nigeria Plc, Global Spectrum Energy Services Plc, AXA Mansard Insurance Plc, Veritas Kapital Plc and Chams Plc.
The market turnover increased by 173.5 per cent, as investors bought and sold a total of 720.19 million shares worth N8.867 billion in 6,096 deals as against 263.338 million shares valued at N3.549 billion in 4,856 deals traded oncentsday.
The market breadth closed negative with 39 losers and 17 gainers compared to 24 laggards and 22 advancing stocks the previous trading session.
The losers’ chart was led in percentage terms Guinness Nigeria Plc, as the brewing company dipped 10 per cent to close at N88. 20 kobo per share.
Globin al Spectrum Energy Services Plc and AXA Mansard Insurance Plc fell 9.77 per by cent and 9.73 per cent to settle at N2. 77 kobo and N2. 04 kobo per share respectively.
Also, the NGX top five losers’ table was concluded when Veritas Kapital Plc and Chams Plc shed 8.70 per cent to close at N0.21 kobo per share.
On the flip side, the gainers’ table was dominated in percentage parameters by Japaul Gold Plc, rising 10 per cent to close at N0.33 kobo per share.
Similarly, Industrial and Medical Glass Nigeria Plc rose by 9.89 per cent to close at N10 per share, while MRS Plc appreciated by 9.70 per cent to settle at N16.40 kobo per share.
Abbey Mortgage Bank Plc and Academy Press Plc soared by 9.09 per cent and 8.15 per cent to settle at N1.80 kobo and N1.46 kobo per share respectively.
A cursory look at the NGX market activity chart reveals that Ecobank Transnational Incorporated (ETI) Plc closed as the most active and valuable stock in volume terms as the lender transacted a total of 257.62 million units of shares valued at N2.96 billion.
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