The Nigerian stock market started last trading week in January with a negative performance following profit taking activities in banking stocks.
Investors may have started reacting to the CBN’s Monetary Policy Committee (MPC) decision to increase Cash Reserve Ratio (CRR) by 500 basis points from 22.5 percent to 27.5 percent. The upward movement of CRR is to mop up excess liquidity in the banking system.
The All Share Index (ASI) was down by 0.26 percent while the year-to-date (ytd) return moderated to 10.10percent.
Fourteen (14) companies gained as against 13 losers. The NSEASI depreciated to close at 29,552.99 points against preceding day high of 29,628.84 points while the value of listed equities decreased from N15.262 trillion to N N15.222trillion, representing N40billion loss.
Unilever Nigeria Plc led the losers table after its share price dropped from N17.55 to N15.8, shedding N1.75 or 9.97percent.
Julius Berger Nigeria Plc followed after its share price dropped from N21.5 to N20.15, losing N1.35 or 6.28percent; while Zenith Bank Plc decreased from N21.95 to N21.45, losing 50kobo or 2.28percent. Also, FBN Holdings Plc decreased from N7.3 to N7, losing 30kobo or 4.11percent. UBA Plc decreased from N8.55 to N8.35, losing 20kobo.
The share price of Okomu Oil Palm increased, from N66 to N68, adding N2 or 3.03percent, Nigerian Breweries rallied from N52 to N54, adding N2 or 3.85percent, while Vitafoam Nigeria Plc moved up from N5 to N5.3, adding 30kobo or 6percent.
In 4,306 deals, equity investors exchanged 444,037,503 units valued at N3.349billion.
“The domestic bourse closed south; largely due to continued profit in the Banking sector as most tier-one banking stocks closed lower.
“We expect a similar trading pattern tomorrow (Tuesday) in the absence of any positive catalysts capable of uplifting investor sentiment”, said Lagos based analysts at Vetiva Securities.
Iheanyi Nwachukwu
