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
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.
