Nigeria’s equities market decreased by 2.33 percent or N1.32trillion in the trading week ended Friday July 26. The market recorded four days of negative closes as against a day gain.

It had opened the review week in green but traded negatively for four days as the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) hikes benchmark interest rate.

The Monetary Policy Committee last Tuesday raised the Monetary Policy Rate (MPR) to 26.75 percent from 26.25 percent which further makes equities less attractive than fixed income instruments. The Central Bank of Nigeria further ramped up tightening measures to rein in inflation.

Read also: Stock market hits new low as sell-side pressure persists on NGX

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The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased from preceding Friday’s high of 100,539.40 points and N56.929 trillion respectively to 98,201.49 points and N55.605trillion.

The stock market which saw pockets of demand in select names however closed the week in red as investors also reacted to companies half-year (H1) scorecards.

The market closed the review week in red as investors sold mostly industrial (-5.89 percent) and banking (-2.94 percent) stocks. This was in addition to pockets of profit taking in consumer goods (-0.73 percent), insurance (-0.27 percent) and oil & gas (-0.54percent) stocks.

This month, the market has decreased by 1.85 percent, while this year’s return has moderated to 31.33percent.

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By Iheanyi Nwachukwu • July 29, 2024

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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