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As Cardoso takes charge of CBN, Nigeria’s equity dips 0.34% while naira drops to a record low

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Bearish sentiments continued to grip Nigeria’s equity market as the benchmark index dipped by 0.34 percent, reflecting the persistent dominance of bears.

Furthermore, the foreign exchange market witnessed the local currency weakening to a record low on the parallel market, trading at N1,000 to the greenback, a decline from the previous day’s rate of N995 to the dollar.

This decline in the value of both equity and the Nigerian naira occurred on the same day that the new Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, and his four deputies were confirmed by the Senate.

In response, Cardoso emphasized one of his top priorities at the regulatory bank, stating, “We need to verify the extent of dollar debt, and once that is verified, we would need to find a way to settle it quickly.”

The All-Share Index, regarded as a key indicator of market sentiment, closed at 66,652.17 points. Significant sell-offs in key stocks, including BUACEMENT (-1.20 percent), ZENITHBANK (-2.97 percent), and GTCO (-2.93 percent), were major contributors to the overall market’s underperformance.

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Consequently, the year-to-date (YTD) return faced a setback, dropping to 30.05 percent, while market capitalization suffered a loss of N126.14 billion, concluding at N36.48 trillion.

An analysis of the day’s market activity indicated a decline in trade turnover compared to the previous session, with the value of transactions falling by 16.76 percent. A total of 363.99 million shares, with a total value of N4.53 billion, changed hands in 7,018 deals.

Remarkably, despite the prevailing bearish sentiment, ACCESSCORP (+0.00 percent) led the volume chart with an impressive 49.97 million units traded in various deals. On the value chart, UBA (-1.71 percent) took the lead with N787.37 million in transactions.

However, market breadth presented a somber picture as declining issues significantly outnumbered advancing ones, closing at a ratio of 1.13 to 1. Notably, CONOIL (-9.99 percent) led the group of sixteen laggards, reflecting the extent of the downward pressure.

In contrast, CORNERST (+10.00 percent) stood at the forefront, topping the leader’s table along with fourteen other gainers.

Market Indicators:

  • All-Share Index: 66,652.17 (-0.34%)
  • Market capitalization (₦ ‘trillion): ₦36.48 (-0.34%)
  • Volume (millions): 363.99 (-10.83%)
  • Value (₦ ‘billion): ₦4.53 (-16.76%)

The consistent bearish trends in Nigeria’s equity market underscore ongoing investor caution and the influence of various economic factors. As uncertainties persist, market participants remain vigilant, actively seeking opportunities amidst the challenges.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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