Equities market sees first dip this week as investors price in inflation figure

Nigeria’s equities market on Wednesday recorded its first negative close this week, pushing the index lower to 98,291.53 points.

Stock investors began on Wednesday to price-in the recently released Nigeria’s inflation rate for September which hit new high.

Nigeria’s persistent battle with inflation has reignited, with headline inflation rising to 32.70 percent in September on petrol price hike, marking a sharp reversal from the two-month decline witnessed earlier.

While some stocks price already reflected the market’s expectations of the earnings report, Deap Capital, UACN, Dangote Sugar and Champion Breweries were Wednesday’s major laggards.

The market’s benchmark performance indicator decreased by 249.37 points or 0.25 percent, while listed stocks value dropped to
N59.559 trillion. Investors in 7,776 deals exchanged 257,551,949 share worth N8.993 billion.

Read also: Nigeria’s equities transactions hit N3.47trn in eight months

According to the National Bureau of Statistics, Consumer Price Index increased to 32.70 percent in September 2024 from 32.15 percent in August 2024.

Deap Capital dropped from a high of N1.20 to N1.32, losing 12 kobo or 10 percent. UACN was also down, from N19.70 to N21.65, losing N1.95 or 9.90 percent.

Dangote Sugar went down from N32 to N35.10, losing N3.10 or 9.69 percent, while Champion Breweries dipped from day open high of N3.42 to N3.75, down by 33 kobo or 9.65 percent.

Ahead of Wednesday’s trading, Vetiva Research analysts said they expect the market to trade in a sideways manner, as cherry-picking action becomes the theme in the day’s session.