Nigeria’s equities market closed slightly in the red zone on Wednesday, thereby recording its first negative after a disappointing inflation report. The market decreased by 0.04percent as investors booked N10 billion loss.
Nigeria’s headline inflation raced to 19.64 percent in July (18.60percent in June), the highest in 16 years and 10 months, according to the National Bureau of Statistics data. Inflation erodes stock return as interest rate hikes to curtail it and improves prospects of the fixed income market.
Skyway Aviation Handling Company Plc led the decliners league after its share price dropped by 55kobo or 9.73percent, from N5.65 to N5.10.
It was followed by SCOA Nigeria Plc which decreased by 19kobo or 9.79percent, from N1.94 to N1.75; and Honeywell Flourmills which dropped from the preceding day’s high of N2.80 to N2.65, losing 15kobo or 5.36percent.
At the close of the trading session on Wednesday, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased from preceding day’s high of 49,709.46 points and N26.811 trillion to 49,691.17 points and N26.801trillion.
The stock market’s positive return year-to-date (YtD) stood lower at +16.33 percent. In 3,492 deals, investors exchanged 128,786,284 shares valued at N4.124billion. FBN Holdings, Zenith Bank, UBA, Cornerstone Insurance and Union Bank of Nigeria were top-5 traded stocks.