Equities market investors lose N9bn as MPC maintains status quo on rates
By Kayode Tokede
The Nigeria Stock Exchange (NSE) equities market closed trading activities on Tuesday on a negative note to reverse the previous day gain, sustaining the seesaw movement.
Investors lost N9 billion at the end of Tuesday trading as the two-day policy meeting, the committee members voted to hold all policy variables at current levels; retain Monetary Policy Rate (MPR) at 11.5 per cent; maintain the asymmetric corridor around the MPR at +100/-700bps; retain the Cash Reserve Ratio (CRR) at 27.5 per cent; and retain liquidity ratio at 30.0 per cent.
Consequently, the All-Share Index (ASI) reduced by 17.90 absolute points, representing a decline of 0.05 per cent to close at 38,704.97 points. Also, the overall market capitalisation value lost N9 billion to close at N20.251 trillion.
The market lose was driven by price depreciation in large and medium capitalised stocks amongst which are; Chemical and Allied Products (CAP), Julius Berger, Nigerian Breweries, MTN Nigeria Communications and NPF Microfinance Bank.
Analysts at Afrinvest Limited said “We expect a mix of bargain-hunting and profit-taking in the local bourse in subsequent trading sessions.”
As measured by market breadth, market sentiment turned negative, as 21 stocks lost relative to 19 gainers. CAP and Wapic Insurance followed with a gain 10 per cent each, to close at N22.00 and 55 kobo, respectively, while NPF Microfinance Bank followed with a gain of 9.94 per cent to close at N1.77, per share.
Julius Berger up by 9.89 per cent to close at N20.55, while FTN Cocoa Processors appreciated by 9.30 per cent to close at 47 kobo, per share. On the other hand, Livestock Feeds led the losers’ chart by 9.52 per cent to close at N1.90, per share. Chams followed with a decline of 8.70 per cent to close at 21 kobo, while Cornerstone Insurance dipped by 6.67 per cent to close at 56 kobo, per share.
Champion Breweries lost 6.25 per cent to close at N2.10, while Ecobank Transnational Incorporated (ETI) shed 5.88 per cent to close at N4.80, per share.
However, the total volume of trades increased by 48 per cent to 410.386 million units, valued at N5.985 billion and exchanged in 3,937 deals. Transactions in the shares of Dangote Sugar Refinery topped the activity chart with 107.078 million shares valued at N1.804 billion. United Bank for Africa (UBA) followed with 78.542 million shares worth N416.270 million, while Transnational Corporation of Nigeria (Transcorp) traded 31.569 million shares valued at N25.259 million.
Guaranty Trust Bank traded 26.829 million shares valued at N832.283 million, while Custodian Investment transacted 24.732 million shares worth N148.685 million.
