Dipo Olowookere
By Dipo Olowookere
Customs Street was down by 0.49 per cent on Monday after investor sentiment turned bearish following profit-taking ahead of rate-setting announcement later today.
The Nigerian Exchange (NGX) Limited came under selling pressure yesterday as traders anticipate a slight hike in the Monetary Policy Rate (MPR) to keep hot money flowing into the country to continue to strengthen the Naira in the foreign exchange (FX) market.
Last month, the Central Bank of Nigeria (CBN) through its Monetary Policy Committee (MPC) raised the benchmark interest rate by 400 basis points or 4.00 per cent to 22.75 per cent.
Since then, the fixed-income market has been very busy with government securities attracting the need dollars to firm the local currency.
As investors await the outcome of the MPC meeting, which commenced on Monday, those in the equity market liquidated their shares, possible to dump into the fixed-income space.
As a result, the All-Share Index (ASI) decreased by 511.02 points to 104,136.35 points from 104,647.37 points, and the market capitalisation dropped 289 billion to settle at N58.880 trillion versus last Friday’s N59.169 trillion.
The market breadth index was negative as the NGX ended the trading session with 20 price gainers and 30 price losers led by Dangote Sugar and International Energy Insurance, which lost 10.00 per cent each to sell for N53.10 and N1.35, Jaiz Bank fell by 9.92 per cent to N2.18, Ikeja Hotel crumbled by 9.72 per cent to N5.85, and Deap Capital slid by 9.52 per cent to 57 Kobo.
On the flip side, Ellah Lakes gained 10.00 per cent to quote at N3.63, Morison Industries jumped by 9.93 per cent to N1.55, Sunu Assurances appreciated by 9.48 per cent to N1.27, Caverton advanced by 9.37 per cent to N1.75, and Sovereign Trust Insurance rose by 9.09 per cent to 48 Kobo.
Business Post reports that the energy and industrial goods sectors closed flat yesterday, the insurance space improved by 0.21 per cent, while the banking and consumer goods sectors collapsed by 1.72 per cent and 0.83 per cent, respectively.
A total of 306.8 million shares worth N11.4 billion were traded in 9,343 deals on the first session of the week compared with the 505.2 million shares worth N14.2 million traded in the preceding session in 9,574 deals, representing a decline in the trading volume, value, and the number of deals by 39.27 per cent, 19.72 per cent, and 2.41 per cent apiece.
The Nigerian Infrastructure Debt Fund (NIDF) topped the activity chart with 35.6 million units sold for N4.1 billion, Jaiz Bank transacted 23.2 million units worth N52.6 million, UBA exchanged 19.5 million units valued at N519.3 million, Nigerian Breweries traded 17.4 million units worth N489.2 million, and Access Holdings sold 15.3 million units valued at N363.9 million.
