Stock Market Sheds 0.31% as DSS-Emefiele Crisis Scares Investors

January 17, 2023
Stock Market Newspaper

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited lost 0.31 per cent on Monday as news of operatives of the Department of State Services (DSS) invading the headquarters of the Central Bank of Nigeria (CBN) in search of its Governor, Mr Godwin Emefiele, rattled investors.

For the past few weeks, investors at the local stock market had closely watched how the secret police have made moves to arrest the central banker over alleged terrorism financing.

However, things turned awry yesterday after it was reported that the security officials were at the CBN office in Abuja, disrupting their activities.

The apex bank later in the day released a statement that Mr Emefiele, whose whereabouts before now had been a subject of speculations, resumed duty after a vacation abroad.

He left Nigeria with President Muhammadu Buhari last month for the US-Africa Summit in Washington, DC, but did not return with his boss after the programme.

There are no indications if Mr Buhari would wade into the matter to reassure investors, especially offshore, that the rule of law would be allowed to play because of the wrong signal the matter is beaming to the world.

At the stock exchange yesterday, investors traded cautiously, which led to selling pressure, causing the trading volume, value and the number of deals to rise by 2.16 per cent, 26.92 per cent, and 13.68 per cent, respectively.

A total of 221.9 million shares worth N3.3 billion exchanged hands in 5,219 deals on Monday, compared with the 217.2 million shares worth N2.6 billion transacted in 4,591 deals last Friday.

UBA sold the highest number of stocks yesterday, 22.9 million units, followed by GTCO, which transacted 20.0 million units. Transcorp traded 14.6 million units, FBN Holdings exchanged 14.1 million units, and Zenith Bank transacted 13.5 million units.

From the analysis of the market data by Business Post, the banking sector suffered the heaviest fall as its index depreciated by 3.39 per cent. The industrial goods counter fell by 0.18 per cent, the consumer goods space depleted by 0.08 per cent, while the insurance and the energy sectors appreciated by 0.39 per cent and 0.09 per cent, respectively.

At the close of business, the All-Share Index (ASI) fell by 163.66 points to 52,348.82 points from 52,512.48 points, as the market capitalisation reduced by N89 billion to N28.513 trillion from N28.602 trillion.

Investor sentiment was weak yesterday as the market breadth ended negative, with 23 price losers and 20 price gainers.

Chellerams declined by 9.70 per cent to N1.21, Prestige Assurance lost 8.70 per cent to trade at 42 Kobo, Livestock Feeds went down by 7.69 per cent to N1.20, Mutual Benefits decreased by 6.25 per cent to 30 Kobo, and Honeywell Flour shrank by 6.22 per cent to N2.26.

However, the share price of Presco grew by 9.67 per cent to N150.80, Coronation Insurance expanded by 9.52 per cent to 46 Kobo, FTN Cocoa gained 7.14 per cent to sell at 30 Kobo, ABC Transport went up by 6.90 per cent to 31 Kobo, as RT Briscoe also rose by 6.90 per cent to 31 Kobo.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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