Nigeria’s equities market on Tuesday recorded its highest daily loss since recent rate hike by the central bank’s monetary policy committee.

The market decreased by 1.86percent or N517billion on Tuesday, caused by leading laggards like MTN Nigeria which lost N20.50 or 9.62percent, from N213 to N192.50 and PZ Cussons Plc which decreased from N10.40 to N9.40, after shedding N1 or 9.62percent.

Investors began eyeing low risk assets as Nigeria’s Central Bank Monetary Policy Committee (MPC) hiked Monetary Policy Rate (MPR) to 14percent in move to curtail inflation.

The apex bank’s hawkish decision is making investors rotate out of equities into fixed income investments to take advantage of the higher yield environment.

Read also: Nigeria’s rate hike forces stock market to close week in red

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Others top decliners are Berger Paints Plc which was down by 65kobo or 9.49percent, from N6.85 to N6.20; and International Breweries Plc which also decreased from N5.55 to N5, losing 55kobo or 9.91percent.

The stock market’s performance indicators –All-Share Index (ASI) and Market Capitalisation – decreased further on Tuesday from 51,400.53 points and N27.718trillion to 50,442.37 points N27.201trillion.

The stock market’s positive return year-to-date (YtD) decreased to 18.09 percent.

Flour Mills, Transcorp, GTCO, Zenith Bank and FBN Holdings were top-5 traded stocks as investors in 4,618 deals exchanged 156,167,630 units valued at N2.936billion.

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By Iheanyi Nwachukwu • July 27, 2022

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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