Policy Tightening: Equities Market Slips as Investors Lose N29bn in One Week

The Nigerian stock market experienced a downturn last week, in response to the latest 150 basis points tightening of the benchmark policy, as equities investors’ wealth declined by N290 billion.

Specifically, the All-Share Index (ASI) fell by 0.52 per cent, closing at 97,612.51 points, while market capitalization saw a reduction of N290 billion, ending the week at N55.218 trillion.

Despite the overall bearish trend, several sector indices managed to post gains. The NGX Oil & Gas, NGX Consumer Goods, and NGX Industrial indices rose by 0.72 per cent, 0.31 per cent, and 0.19 per cent, respectively. However, the NGX Banking index dropped significantly by 6.16 per cent, and the NGX Insurance index declined by 3.50 per cent.

The market breadth was negative, with 24 equities appreciating, 53 depreciating, and 77 remaining unchanged. Leading the gainers was Berger Paints, which surged by 20.65 per cent to close at N14.90 per share. Regency Assurance followed, gaining 19.35 per cent to close at 37 kobo, while Cutix increased by 10.20 per cent to N3.35 per share.

On the downside, Deap Capital Management & Trust led the decliners with a 24.53 per cent drop, closing at 40 kobo per share. FTN Cocoa Processors fell by 16.67 per cent to N1.20, while both Transnational Corporation (Transcorp) and United Bank for Africa (UBA) declined by 12.13 per cent, closing at N10.50 and N19.20 per share, respectively.

Trading volume for the week totalled 1.986 billion shares worth N40.715 billion across 38,487 deals, up from the previous week’s 1.652 billion shares valued at N42.677 billion in 38,123 deals.

The Financial Services Industry led the activity chart, with 1.577 billion shares valued at N30.359 billion traded in 20,697 deals, representing 79.41 per cent of total equity turnover volume and 74.56 per cent of value.

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

Among the top traded equities, Ecobank Transnational Incorporated (ETI), Access Holdings, and UBA accounted for 1.006 billion shares worth N20.115 billion in 6,849 deals, making up 50.67 per cent of total equity turnover volume and 49.40 per cent of value.

In summary, while the market faced overall declines due to policy tightening, certain sectors demonstrated resilience, reflecting a complex but dynamic trading environment.