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Nigerian equity market closes lower as index drops by 0.20%, naira weakens vs dollar

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By Samuel Bankole

The Nigerian equity market closed on a negative note on Tuesday, with the All Share Index (ASI) decreasing by 0.20% to close at 99,805.95 points.

The market capitalization of equities listed on the Nigerian Exchange (NGX) also saw a decline, decreasing from N56.572 trillion to N56.459 trillion.

The total volume traded closed with an exchange of 422.689 million units valued at N53.96 billion, spanning 8,256 deals. Despite the overall market dip, the market breadth remained positive, with 28 gainers outnumbering the 24 losers.

The NGX 30 Index, which tracks the top 30 companies in terms of market capitalization and liquidity, decreased by 0.22% to close at 3,689.92 points, down from the previous close of 3,698.18 points.

Market turnover for the NGX 30 closed with a traded volume of 143.88 million units.

Among the key gainers were Dangote Sugar and Lafarge Africa, reflecting investor confidence in their performance and future prospects. On the flip side, Guaranty Trust Holding Company (GTCO) and Ecobank Transnational Incorporated (ETI) were the major losers, pulling down the overall market performance.

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In the money market, the overnight (O/N) rate increased by 0.27% to close at 32.55%, up from 32.28% the previous day. The open repo (OPR) rate also rose by 0.36% to 32.02% from the previous day’s 31.66%.

At the Investors’ and Exporters’ (I&E) foreign exchange market, the naira depreciated, with the dollar quoted at N1,532.58 compared to the previous close of N1,523.85.

This continued depreciation of the naira reflects ongoing pressures in the foreign exchange market, influenced by economic and policy factors.

Market Outlook

The Nigerian equity market has faced significant volatility recently, influenced by both local economic challenges and global market trends.

The ongoing adjustments in the interest rates and foreign exchange market are critical indicators for investors to watch, as they signal broader economic shifts that could impact market performance.

Investors remain cautiously optimistic, balancing the opportunities presented by gainers like Dangote Sugar and Lafarge Africa against the risks highlighted by declines in financial stocks such as GTCO and ETI.

As the market navigates these fluctuations, strategic positioning and careful analysis of macroeconomic indicators will be essential for making informed investment decisions.

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

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