Equity Traders Lose N13 Billion in One Week

For the second consecutive week, the local stock exchange saw negative emotions as equity investors saw a modest decline of N13 billion in one week after the Central Bank of Nigeria’s (CBN) increase in the Monetary Policy Rate (MPR), often known as the benchmark interest rate.

The Monetary Policy Committee (MPC) of the CBN raised the interest rate by another 50 basis points last week, to 18 percent from 17.5 percent, which tempered market sentiment toward stocks during the week under review.

As a result, at the close of trading on Friday, March 24, the market capitalization of the Nigerian Exchange, which represents the value of traded stocks, decreased by N13 billion week over week, from its opening level of N29. 915 trillion on Monday, March 20, while the benchmark All-Share Index decreased by 0.04 percent to 54,892.53 points, from its opening 54,915.39 points the previous Monday.

The performance of the market was hampered by losses on BUACEMENT (-1.6%), and STANBIC (-5.8%). As a result, the market’s returns for the month and the year as a whole ended up being -1.6 percent and +7.1 percent, respectively.

Trading volumes rose by 97.8% week over week but value traded fell by 6.5 percent, indicating a mixed level of activity.

Moreover, sector results varied, with the Banking (+0.9%) index rising while the Consumer Goods (-0.7%), Industrial Goods (-0.5%), and Insurance (-0.5%) indexes decreased. The index for oil and gas ended unchanged.

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