NBS Inflation Data Tumbles Nigerian Exchange by 0.02%

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited reacted negatively to inflation data released on Tuesday by the National Bureau of Statistics (NBS) as it tumbled by 0.02 per cent at the close of business.

The stats office said inflation further increased by 21.09 per cent in October compared with the 20.77 per cent reported in the preceding month as a result of a sustained rise in the prices of goods and services in the country.

This information did not go down well with stock investors, who trimmed their exposure to the investment tool, causing the market to bleed yesterday.

Shares of Lafarge Africa were the worst hit during the session as they fell by 9.66 per cent to N20.10 per unit. Royal Exchange dropped 9.41 per cent to trade at 77 Kobo, Cornerstone Insurance declined by 9.09 per cent to 40 Kobo, UPDC REIT lost 8.93 per cent to sell for N2.55, and FTN Cocoa went down by 8.82 per cent to 31 Kobo.

On the flip side, Learn Africa and CWG topped the gainers’ log on Tuesday after their prices rose by 10.00 per cent each to N1.65 and 88 Kobo, respectively. Caverton improved by 8.75 per cent to 87 Kobo, Prestige Assurance jumped by 8.33 per cent to 39 Kobo, and Japaul garnered 7.41 per cent to 29 Kobo.

Business Post reports that the insurance and industrial goods sectors depreciated by 1.10 per cent and 0.65 per cent apiece, while the consumer goods, energy and banking counters appreciated by 0.38 per cent, 0.30 per cent, and 0.24 per cent, respectively.

At the close of business, the All-Share Index (ASI) shrank by 9.87 points to 43,808.25 points from 43,818.12 points, and the market capitalisation retreated by N6 billion to close at N23.861 trillion versus Monday’s N23.867 trillion.

At the market yesterday, investors transacted 103.5 million shares worth N1.2 billion in 3,045 deals compared with the 187.1 million shares worth N2.5 billion traded in 3,326 deals, indicating a decline in the trading volume, value and number of deals by 44.70 per cent, 53.20 per cent, and 8.45 per cent, respectively.

FBN Holdings topped the activity chart as it traded 11.4 million shares, Transcorp exchanged 11.3 million equities, Fidelity Bank transacted 10.3 million stocks, Access Holdings sold 8.7 million equities, and GTCO transacted 6.0 million stocks.