HomePolitics TodayStock Market Plummets by N89bn as Investors React to MPR Increase

Stock Market Plummets by N89bn as Investors React to MPR Increase

-

IMG 20240522 WA0001

By Fasuyi Tolulope Samuel

The Nigerian stock market experienced a significant decline yesterday, shedding N89 billion in value as investors reacted adversely to the recent hike in the Central Bank of Nigeria’s (CBN) Monetary Policy Rate (MPR).

Following the Monetary Policy Committee’s (MPC) decision to increase the MPR to 26.25% amid an inflation rate of 33.69% and ongoing foreign exchange market challenges, the Nigerian Exchange Limited All-Share Index (NGX ASI) fell by 157.33 basis points or 0.16%, closing at 98,128.00 basis points. Consequently, the market capitalization dropped to N55.509 trillion.

This downturn was primarily driven by price depreciation in several large and medium-capitalized stocks, including Guinness Nigeria, Zenith Bank, Guaranty Trust Holding Company (GTCO), Multiverse Mining & Exploration, and Nigerian Exchange Group.

Market sentiment, as measured by market breadth, was negative, with 22 stocks declining against 15 gainers. Tantalizer led the gainers with an 8.00% increase, closing at 54 kobo per share. Wapic Insurance followed with a 7.81% rise to 69 kobo, and Omatek Ventures climbed 7.69% to 70 kobo per share. Julius Berger appreciated by 7.19% to N85.00, while Lafarge Africa advanced 4.48% to N35.00 per share.

Conversely, The Initiates Plc (TIP) topped the losers’ chart, dropping 10% to close at N1.80 per share. Multiverse Mining & Exploration declined by 9.82% to N12.40, and Cornerstone Insurance dipped 9.52% to N1.90 per share. DEAP Capital Management & Trust lost 9.09% to close at 40 kobo, while Caverton Offshore Support Group decreased by 8.45% to N1.30 per share.

Despite the market’s overall decline, trading activity saw an uptick. The total volume of trades increased by 18.7% to 271.708 million units, valued at N5.435 billion, and exchanged in 7,383 deals. Access Holdings led the trading activity with 35.358 million shares worth N1.110 billion. Zenith Bank followed closely with 75.849 million shares valued at N1.036 billion, while Guaranty Trust Holding Company (GTCO) traded 35.008 million shares worth N1.348 billion. United Bank of Africa (UBA) recorded 31.280 million shares worth N641.166 million, and Transnational Corporation (Transcorp) traded 25.433 million shares worth N285.383 million.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Breaking: House of Representatives Slashes Salaries by 50% to Support Nigerians...

0
Breaking: House of Representatives Slashes Salaries by 50% to Support Nigerians in Economic Crisis Afor Kenneth In a show of solidarity with Nigerians facing economic hardship...
Verified by MonsterInsights