Stock market down by 0.52% in Nigeria’s rates decision week

The Nigerian Exchange Limited (NGX) All-Share Index ( ASI) and Market Capitalisation depreciated by 0.52 percent to close the week ended Friday May 24 at 97,612.51 points and N55.218 trillion respectively.

Similarly, all other indices finished lower with the exception NGX MERI Value, NGX Consumer Goods, NGX Oil and Gas, NGX Lotus ll and NGX Industrial Goods which appreciated by 1.74 percent, 0.31 percent, 0.72 percent, 0.44 percent and 0.19 percent while the NGX ASeM index closed flat.

Twenty-four (24) equities appreciated in price during the review week lower than 28 equities in the preceding week. Fifty-three equities depreciated in price higher than 51 in the preceding week, while 77 equities remained unchanged, higher than 76 recorded in the preceding week.

In the trading week under review, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) further ramped up tightening measures to check inflation as it hiked policy rate by 150 basis points (bps) to 26.25percent.

MPC also retained cash reserve ratio (CRR) for deposit money bank at 45percent; retained asymmetric corridor at +100bps/-300bps; and retained liquidity ratio constant at 30percent.

“The market remains under pressure, as investors pursue safety in the fixed income space. However, given the strong sell-side action in the banking space, we anticipate some buy-side action in the coming week, as traders seek to take advantage of some stocks that have been beaten down in recent sessions,” according to Lagos-based Vetiva Research analysts in their May 24 note.

Equities dealers traded 1.986 billion shares worth N40.715 billion in 38,487 deals in contrast to a total of 1.652 billion shares
valued at N42.677 billion that exchanged hands the preceding week in 38,123 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.577 billion shares valued at N30.359 billion traded in 20,697 deals; thus contributing 79.41 percent and 74.56 percent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 125.342 million shares worth N1.387 billion in 2,283 deals; and the Consumer Goods Industry, with a turnover of 77.327 million shares worth N2.446 billion in 4,916 deals.

Trading in the top three equities namely Ecobank Transnational Incorporated Plc, Access Holdings Plc and United Bank for Africa Plc (measured by volume) accounted for 1.006 billion shares worth N20.115 billion in 6,849 deals, contributing 50.67 percent and 49.40 percent to the total equity turnover volume and value respectively.

Also, 5,340 units exchange traded products valued at N2.350 million were traded in 111 deals compared with a total of 4,103 units valued at N2.429 million traded the preceding week in 110 deals.

Likewise, 82,778 units of bonds valued at N80.570 million were traded in 18 deals compared with a total of 9,282 units valued at N8.945 million traded the preceding week in 24 deals.