The Nigerian Exchange Limited (NGX) extended its decline on Wednesday after the Central Bank of Nigeria-led monetary committee raised the interest rate to 14%.
Investors exchanged 238,270,347 shares estimated at N3.336 billion in 3,814 deals during the trading hours of Wednesday, against 205,641,440 shares valued at N2.787 billion that exchanged hand in 4,127 transactions on Tuesday.
Living Trust was the most traded equity with 40909105 shares worth N49,090,926.00. Followed by Nigerian Breweries with 30379165 shares valued at N1,512,638,800.
Analysis of sub-indices showed the banking index declined by 41 basis points (bps) on a 3.70% decline in the value of Union Bank of Nigeria, 2.22% depreciation in Unity Bank and 0.94% drop in the value of Fidelity Bank’s shares. United Bank for Africa and FCMB closed in the green with 0.67% and 0.66%, respectively.
The consumer goods index also dipped by 13bps even with Dangote Sugar posting a 0.63% gain. The oil and gas index gained 75bps on a 5.01% increase in Oando. Also, the industrial index gained 19bps on the back of a 2.51% increase in the worth of WAPCO shares.
Market value of listed stocks depreciated to N28.142 trillion, representing a N66 billion decline from the N28.208 billion it closed on Tuesday. NGX All-Share Index declined by 0.23% to 52,186.52 index points.
The Exchange year to date moderated to 22.46% as 16 stocks gained and another 16 stocks closed in the red. See other details below.
|CWG||N 0.81||N 0.89||0.08||9.88 %|
|MULTIVERSE||N 1.62||N 1.78||0.16||9.88 %|
|ACADEMY||N 1.86||N 2.04||0.18||9.68 %|
|TIP||N 0.44||N 0.48||0.04||9.09 %|
|RTBRISCOE||N 0.44||N 0.48||0.04||9.09 %|
|NAHCO||N 6.00||N 5.40||-0.60||-10.00 %|
|FTNCOCOA||N 0.35||N 0.32||-0.03||-8.57 %|
|NB||N 53.00||N 49.75||-3.25||-6.13 %|
|CHIPLC||N 0.70||N 0.66||-0.04||-5.71 %|
|OANDO||N 5.45||N 5.15||-0.30||-5.50 %|
Nigerian Exchange Sustains Bullish Momentum, Adds N305bn to Investors’ Wealth
The Nigerian Exchange Limited (NGX) continued its bullish run on Wednesday as investors gained N305 billion.
The Exchange has now gained N471 billion in the last two trading sessions following a N259 billion decline recorded on Monday due to the plunge in the value of some medium-cap stocks.
At the close of trading on Wednesday, the All-Share Index and market capitalization rose by 0.78% to 71,808.64 and N39.294 trillion, respectively.
The year-to-date gains of the index rose to 40.11%.
A total of 34 stocks closed in the green against 22 that closed in the red as a total of 121 stocks exchanged hands during the day.
This positive momentum was primarily driven by share price appreciation from top gainers, including Thomas Wyatt (9.93%), FBN Holdings (9.91%), Multiverse (9.90%), Ecobank Transnational Incorporated (9.88%), and Infinity Trust Mortgage Bank (9.70%).
However, some stocks experienced losses, including Axa Mansard Insurance, Guinea Insurance, and Oando Plc, with share dips of 9.69%, 9.68%, and 9.13%, respectively.
Sectorial performances varied with NGX Insurance, NGX Consumer Goods, and NGX Industrial Goods indices recording losses, while the Oil/Gas sector reported a lull performance.
Notably, tier I banking stocks fueled the Banking sector to a substantial 5.01% gain, with GTCO, United Bank for Africa, AccessCorp, and Zenith Bank leading in volume and value, contributing to the overall market bullishness.
Positive trading activity continued, with a 19.90% increase in total deals, 59.15% rise in volume, and an 8.88% uptick in value, totaling 8,412 deals, 690.01 million units, valued at N12.10 billion.
GTCO emerged as the most actively traded security in terms of volume and value, with 76.70 million units worth N3.04 billion exchanged in 260 deals.
Global Markets Face Headwinds as European Equities Drop Amid Economic Concerns
European equity experienced a decline following losses in Asian shares, the pressure created by weak oil prices and growing apprehensions about China’s economic outlook.
The Euro Stoxx 50 contract fell by 0.5%, mirroring a broader trend of cautiousness in the markets.
The drop in Asian stocks from Hong Kong to mainland China and Australia followed a third consecutive daily decline for the S&P 500 and contributed to a general atmosphere of market uncertainty.
Treasury yields rose after a previous drop, with the 10-year note experiencing its lowest levels since August.
The shift in sentiment was evident in a seven-basis-point jump, in tandem with a selloff in Japanese sovereign debt.
Energy producers faced declines due to oil reaching its lowest point since June amid oversupply concerns.
Also, Moody’s Investors Service’s downgrade of its outlook on several Chinese companies, coupled with worries about the nation’s debt burden, contributed to equity weakness.
A surprise contraction in China’s imports in November further fueled concerns about the economic slowdown.
Investors are now eyeing Friday’s US jobs report following private payrolls data that fell short of estimates, indicating potential softening in the employment market.
Meanwhile, oil stabilized after a five-day losing streak, and focus is on the upcoming OPEC+ production plans.
The dollar remained relatively steady against major currencies, and as markets await the Federal Reserve’s meeting next week, there is anticipation regarding potential shifts in market expectations based on quarterly forecasts.
In corporate news, Apple Inc. is preparing for new models and upgrades, aiming to reverse declining sales, while Advanced Micro Devices Inc. targets the artificial intelligence market dominated by Nvidia Corp.
Gold extended gains and bitcoin traded below $44,000, a level not seen since June last year.
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