NSE Reacts Negative as Monetary Authority Holds Key Rates

NSE Reacts Negative as Monetary Authority Holds Key Rates

NSE Reacts Negative as Monetary Authority Holds Key Rates

The Nigerian Stock Exchange (NSE) reacts negative with sell-offs as monetary authority holds key policy rates after two days demanding deliberations.

Profit-takings activities in the market knocked off N9.4 billion from stock market capitalisation, thus widened year to date losses.

As noted, price declines in ZENITH (-2.2%), ETI (-5.9%) and FLOURMILL (-2.4%) dragged performance in the market.

Consequently, the benchmark index declined 5 basis points to 38,704.97 points, as year to date loss worsened to -3.9%.

Following the loss recorded, market capitalisation settled at ₦20.3 trillion.

Trading activity improved as volume and value increased 48.0% and 96.0% respectively to 410.4 million units and ₦6.0 billion.

The most traded stocks by volume were DANGSUGAR (107.1 million units), UBN (78.5 million units) and TRANSCORP (31.6 million units).

Meanwhile DANGSUGAR (₦1.8 billion), GUARANTY (₦832.3 million) and STANBIC (₦499.8 million) led by value.

In its market report, Afrinvest stated that performance across sectors under its coverage universe was bullish as 4 indicators gained.

The Insurance index led the gainers, up 0.6% following price uptick in WAPIC (+10.0%) and MANSARD (+1.0%).

Also, the Oil & Gas and Consumer Goods indices appreciated 0.3% and 0.1% respectively on the back of gains in OANDO (+1.6%) and NIGERIAN BREWERIES (+2.1%).

Afrinvest hinted however that buying interest in MTNN (+0.1%) drove a 6 basis points gain in the AFR-ICT index.

On the flip side, sell-offs in ZENITH (-2.2%) and ETI (-5.9%) pushed the Banking index lower by 0.7% while the Industrial Goods index closed flat.

Investor sentiment, as measured by market breadth weakened to 1.0x from the 3.3x recorded previously as 19 stocks gained against 20 decliners.

WAPIC (+10.0%), CAP (+10.0%) and NPFMCRFBK (+9.9%) were the top gainers while LIVESTOCK (-9.5%), CHAMS (-8.7%) and CORNERST (-6.7%) were the top decliners.

“We expect a mix of bargain-hunting and profit-taking in the local bourse in subsequent trading sessions”, Afrinvest stated.

Neimeth Stock Downgraded to Sell despite 40% Profit Growth Projection

NSE Reacts Negative as Monetary Authority Holds Key Rates