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Nigeria’s equity market declines by N66 bln on reaction to MPC rate hike

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By Ifeyinwa Ezeokoli 

The Nigerian equities market on Wednesday extended its losses for the second consecutive session with a decline of N66 billion in the market value as investors reacted to the hike in interest rate by the Monetary Policy Committee (MPC) on Tuesday.

The All-Share Index (ASI) decreased by 122.36 points, representing a dip of 0.23 per cent to close at 52,186.52 points.

Accordingly, the month-to-date and year-to-date returns moderated to 0.7 per cent and 22.2 per cent, respectively.

Similarly, the market capitalization dropped by N66 billion to close at N28.142 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nigerian Breweries, Nigerian Exchange Group (NGXGroup), Nigerian Aviation Handling Company (NAHCO), Guaranty Trust Holding Company (GTCO) and Oando Plc.

Stocks analysts expected cautious trading as players digest the rate hike outcome of MPC July meeting, as the market expects more earnings reports and interim dividends.

GTI Securities Limited said “equity market closed trading activities for Wednesday negative, as sell-off was seen across four major market sectors, led by the Consumer goods sector.

“We expect cautious trading to continue through the week, as investors react to the recent Interest rate hike by the Apex bank and rising inflation.”

Market breadth closed negative with 22 losers versus 13 gainers.

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NAHCO led the losers’ chart in percentage terms by 10 per cent to close at N5.40 per share.

FTN Cocoa processors followed with a decline of 8.57 per cent to close at 32 kobo, wile Nigerian Breweries lost 6.13 per cent to close at N49.75, per share.

Consolidated Hallmark Insurance declined by 5.71 per cent to close at 66k, while Oando shed 5.50 per cent to close at N5.15 per share.

On the other hand, Multiverse Mining and Exploration and Computer Warehouse Group (CWG) topped the gainers’ chart in percentage terms with 9.88 per cent each to close at N1.78 and 89k per share, respectively.

Academy Press followed with 9.68 per cent to close at N2.04, while R.T. Briscoe Nigeria and The Initiates Plc appreciated by 9.09 per cent each to close at 48k per share each.

However, the total volume traded rose 15.87 per cent to 238.27 million shares worth N3.34 billion traded in 3,814 deals.

Transactions in the shares of LivingTrust Mortgage Bank topped the activity chart with 40.91 million shares valued at N49.091 million.

Nigerian Breweries followed with 30.379 million shares worth N1.51 billion, while United Bank for Africa traded 26.71 million shares valued at N198.46 million.

Access Holdings traded 21.90 million shares valued at N199.09 million, while FBN Holdings (FBNH) transacted 17.859 million shares worth N196.63 million.

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