By Dipo Olowookere
Investors on Wednesday reacted negatively to the marginal hike in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN) on Tuesday evening.
By the time the Monetary Policy Committee (MPC) was concluded on Tuesday, the financial markets had closed. The apex bank raised the benchmark interest rate by 0.25 per cent to 18.75 per cent from 18.50 per cent.
Traders pulled back at the equity market yesterday, resulting in the Nigerian Exchange (NGX) Limited reversing the gain by 0.46 per cent at the close of business.
Business Post reports that the banking space lost 0.60 per cent, the consumer goods index depreciated by 0.45 per cent, and the industrial goods sector went down by 0.02 per cent.
The trio weakened the domestic bourse in the midweek session despite the energy index expanding by 4.91 per cent and the insurance counter growing by 1.02 per cent.
Consequently, the All-Share Index (ASI) decreased by 301.65 points to 65,687.16 points from 65,988.81 points, and the market capitalisation declined by 0.52 per cent or N187 billion to N35.746 trillion from N35.933 trillion due to the delisting of Ardova Petroleum Plc shares.
Amid the loss, investor sentiment remained strong as the market breadth index was positive with 32 price gainers and 24 price losers led by Cadbury Nigeria and Unilever Nigeria, which shed 10.00 per cent each to N15.30 and N15.75, respectively. Multiverse declined by 9.97 per cent to N2.71, Omatek shrank by 9.62 per cent to 47 Kobo, and Champion Breweries lost 7.45 per cent to trade at N3.48.
On the flip side, the trio of NCR Nigeria, Courteville, and Seplat Energy improved their stock prices by 10.00 per cent each to N3.96, 66 Kobo, and N1,693.60 apiece, as FTN Cocoa rose by 9.92 per cent to N2.66, and Japaul grew by 9.90 per cent to N1.11.
During the trading day, investors traded 500.4 million stocks worth N7.1 billion in 7,345 deals compared with the 553.5 million stocks worth N7.4 billion traded in 8,313 deals on Tuesday, showing a decline in the trading volume, value and the number of deals by 9.59 per cent, 4.05 per cent, and 11.64 per cent apiece.
Financial equities topped the activity chart on Wednesday, with UBA selling 58.3 million units valued at N871.4 million, Access Holdings trading 55.2 million units worth N991.2 million, Universal Insurance exchanging 32.7 million units worth N7.6 million, FBN Holdings transacting 28.0 million units for N590.5 million, and Zenith Bank trading 26.5 million units valued at N933.5 million.
