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HomeBusinessLocal bourse succumbs to profit-taking as naira weakens further vs dollar

Local bourse succumbs to profit-taking as naira weakens further vs dollar

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By Ifeyinwa Ezeokoli 

The domestic stock market All-Share Index (ASI) declined further by 0.69 per cent on Thursday as investors booked profits on shares of Airtel Africa and 21 others, just as the naira also depreciated against the dollar on the official window.

The All Share Index (ASI) decreased by 364.31 points representing a dip of 0.69 per cent to close at 52,411.09 points.

Consequently, the month-to-date loss increased to 1.1 per cent, while the year-to-date return moderated to 22.7 per cent.

Similarly, the market capitalisation lost N197 billion to close at N28.255 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, BUA Foods, Conoil, Nigerian Exchange Group (NGXGroup) and Eterna.

On market outlook, analysts at GTI Securities Limited said “The Nigerian equity market closed bearish, as the Federal reserves raised its benchmark interest rates by 0.75 per cent, its most aggressive hike since 1994.

“We expect cautious trading and profit-taking to continue tomorrow in the domestic market.”

Market breadth closed negative with 22 losers against 12 gainers.

Conoil led the losers’ chart in percentage terms by 10 per cent to close at N28.80 per share.

BUA Foods followed with 9.97 per cent to close at N53.75, while e-Tranzact International was down by 9.96 to close at N2.44 per share.

CWG Plc lost 9.62 per cent to close at 94k, while Eterna shed 6.25 per cent to close at N7.50 per share.

On the other hand, Linkage Assurance led the gainers’ chart highest price gain of 9.80 per cent to close at 56k per share.

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Courteville Business Solutions followed with a gain of eight per cent to close at 54k, while Japaul Gold & Ventures appreciated by 6.90 per cent to close at 31k per share.

Chams Plc went up by 4.17 per cent to close at 25k, while UACN Property Development Company (UPDC) appreciated by 4.08 per cent to close at N1.02 per share.

However, the total volume traded rose 12.51 per cent to 211.614 million shares worth N2.365 billion traded in 4,750 deals.

Transactions in the shares of Sterling Bank topped the activity chart with 63.66 million shares valued at N97.45 million.

Zenith Bank followed with 17.34 million shares worth N382.57 million, while United Bank for Africa traded 17.33 million shares valued at N131.85 million.

Transcorp traded 16.17 million shares valued at N21.04 million, while FBN Holdings transacted 10.29 million shares worth N101.02 million.

On the money market, the interbank lending rate was flat with the Overnight (O/N) rate remaining unchanged at 14.00 per cent, while the Open Repo (OPR) increased by 0.08 per cent to close at 13.83 per cent as against the last close of 13.75 per cent.

The Central Bank of Nigeria (CBN) sold a total of N34.88 billion across the 91-day (N1.44 billion), 182-day (N1.28 billion), and 364-day (N32.16 billion) tenors on Wednesday.

The stop rates for 91-day, 182-day, and 364-day tenor settled lower at 2.49 per cent (-1 basis point), 3.79 per cent (-5 bps), and 6.07 per cent (-37 bps), respectively.

The auction was oversubscribed by 412 per cent, with bid-to-cover ratios settling at 0.28x (91-day), 1.60x (182-day), and 6.28x (364-day).

At the I&E FX market, the Naira depreciated by 0.12 per cent as the dollar was quoted at N420.50 as against the last close of N420.00.

Most participants maintained bids between N413.00 and N444.00 per dollar.

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