Equities Market Sinks by N74bn as Selling Spree Persists

Sustained selloffs wiped out about N74 billion from the Nigerian Exchange (NGX) equities segment on Wednesday amidst fear of surging inflation. The negative perception of stocks in the local bourse caused year-to-date returns to moderate, tracking the annual inflation rate.

The headline inflation rate went through the roof in April, printing at 33.69%, while the year-to-date return declined to 30.18% following a selling spree on banking stocks. Nigeria’s inflation has continued to worsen, resulting in a widening negative real return on investment in the fixed income market.

Key performance indicators nosedived by 0.13% as the local bourse depreciated for the fourth consecutive trading day.  Stockbrokers at Atlass Portfolios Limited said in a market update that investors’ wealth has declined by ₦511 billion in four days.

According to data from the Nigerian Exchange, the equities market index, or All-Share Index, decreased by 130.56 basis points to close at 97,343.42 points. Despite the negative trend, market activities improved.  Total volume and total value traded increased by +15.97% and +22.87%, respectively.

Stockbrokers revealed that approximately 355.55 million units valued at ₦7,142.97 million were transacted in 7,333 deals. GTCO was the most traded stock in terms of volume, accounting for 24.80% of the total volume of trades. On the volume drivers’ chart are ACCESSCORP (8.34%), TANTALIZER (7.35%), PRESTIGE (6.05%), and UBA (5.30%).

Details from the equities market showed that GTCO was also the most traded stock in value terms, with 47.87% of the total value of trades on the exchange. CUSTODIAN topped the advancers’ chart with a price appreciation of 9.63 percent, trailed by INTENEGINS, which gained +9.29%.

Other gainers are SOVRENINS (+7.89%), NPFMCRFBK (+7.10%), CHAMPION (+6.11%), ACADEMY (+4.10%), and six others. Thirty stocks depreciated, data from the Nigerian bourse revealed. FTNCOCOA and PZ were the top losers, with a price depreciation of -10.00% each.

Other losers include STERLINGNG (-9.89%), NGXGROUP (-9.49%), REGALINS (-5.71%), JAPAULGOLD (-4.55%), and ZENITH BANK (-3.20%). Given the bearish direction, the market breadth closed negative, recording 12 gainers and 30 losers.

Also, the market sector performance was negative, as three of the five major market sectors were down. The banking index declined by 1.67%, followed by the insurance index, losing -0.43%, and the consumer goods sector by (-0.20%).

The oil and gas and industrial sectors closed flat. Overall, the equities market capitalisation of the Nigerian Exchange lost ₦73.85 billion to close at ₦55.06 trillion #Equities Market Sinks by N74bn as Selling Spree Persists Fiscal Reforms to Boost Revenue/GDP to 10% in 2024 –Ratings

Elsewhere, US inflation rate moderated, giving hope that the Fed would cut rates soon.
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