THE Nigerian Exchange (NGX) is down 24% year to date as equities struggle for the third trading session today, with selloffs in bellwether stocks reversing the intraday rise.
The market capitalisation was N28.6 trillion at the end of the week, down N357.4 billion due to a persistent selloff. After a 150 basis point cut in the monetary policy rate, stockbrokers observed a dark cloud forming, causing yields to reprice in the fixed income market.
More money is expected to flow into government assets, particularly from institutional investors, such as Pension Fund Administrators. The Nigerian Exchange reported today that selloffs in OKOMUOIL (-10.0 percent) and FBNH (-4.6 percent) caused the benchmark index to decline three basis points.
As a result, the All-Share Index of the local stock exchange closed at 52,974.15 points, with a year-to-date increase of +24.0 percent.
According to data from the Exchange, the overall volume of trades fell by 7.2 percent to 295.35 million units worth N3.59 billion, which were traded in 4,637 deals. The most traded stock by volume was TRANSCORP, with 121.84 million units exchanged, and the most traded stock by value was AIRTELAFRI, with N573.23 million traded.
Cordros Capital noted in its market report that performance across its sectors coverage was broadly unfavorable. Amid profit-taking, the Insurance index fell 0.5 percent, Banking down 0.3 percent, and Oil & Gas fell 0.2 percent.
Meanwhile, the Consumer Goods index rose 0.1 percent in today’s trading session, making it the only gainer. The Industrial Goods index was essentially unchanged. Market sentiment was also negative (0.7x), with 19 tickers losing out versus 13 gainers. The losers’ chart was headed by OKOMUOIL, which had lost 10.0 percent of its beginning value.
NCR’s 9.8% drop was carefully watched by the stock.
On the gainers’ chart, ETERNA’s stock rose 9.9% and FTNCOCOA’s stock rose 9.4%, but they were unable to offset price depreciation on the local exchange. According to Afrinvest, the local bourse had a bullish month in May, with 11 of the 20 trading sessions ending in positive territory.
Meanwhile, the Consumer Goods index rose 0.1 percent in today’s trading session, making it the only gainer. The Industrial Goods index was essentially unchanged. Market sentiment was also negative (0.7x), with 19 tickers losing out versus 13 gainers. The losers’ chart was headed by OKOMUOIL, which had lost 10.0 percent of its beginning value.
