Stock Market Drops by N89bn as Investors React to MPR Hike
Kayode Tokede
The Nigerian stock market yesterday closed on profit-taking note, dropping by N89 billion as investors reacted negatively to hike in Central Bank of Nigeria Monetary Policy Rate (MPR).
The Monetary Policy Committee (MPC) of the CBN voted to hike MPR to 26.25per cent amid 33.69per cent inflation rate and crisis in foreign exchange market.
The Nigerian Exchange Limited All-Share Index (NGX ASI) declined by 157.33 basis points or 0.16 per cent to close at 98,128.00 basis points. Also, market capitalisation dipped by N89 billion to close at N55.509 trillion.
The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Guinness Nigeria, Zenith Bank, Guaranty Trust Holding Company (GTCO), Multiverse Mining & Exploration and Nigerian Exchange Group.
As measured by market breadth, market sentiment was negative, as 15 stocks gained relative to 22 losers. Tantalizer emerged the highest price gainer of 8.00 per cent to close at 54 kobo, per share. Wapic Insurance followed with a gain of 7.81 per cent to close at 69 kobo, while Omatek Ventures rose by 7.69 per cent to close at 70 kobo, per share.
Julius Berger appreciated by 7.19 per cent to close at N85.00, while Lafarge Africa advanced by 4.48 per cent to close at N35.00, per share.
On the other side, The Initiates Plc (TIP) led others on the losers’ chart with 10 per cent to close at N1.80, per share. Multiverse Mining & Exploration followed with a decline of 9.82 per cent to close at N12.40, while Cornerstone Insurance dipped by 9.52 per cent to close at N1.90, per share.
DEAP Capital Management & Trust lost 9.09 per cent to close at 40 kobo, while Caverton Offshore Support Group depreciated by 8.45 per cent to close at N1.30, per share.
The total volume of trades increased by 18.7 per cent to 271.708 million units, valued at N5.435 billion, and exchanged in 7,383 deals. Transactions in the shares of Access Holdings led the activity with 35.358 million shares worth N1.110 billion. Zenith Bank followed with a volume of 75.849 million shares valued at N1.036 billion, while Guaranty Trust Holding Company (GTCO) traded 35.008 million shares valued at N1.348 billion.
United Bank of Africa (UBA) traded 31.280 million shares worth N641.166 million, while Transnational Corporation (Transcorp) traded 25.433 million shares worth N285.383 million.
