Nigerian stocks fall for third straight day as inflation soars to 17-year high
Nigerian stocks were weaker by 0.07 per cent on Monday as investors’ resolve to rid themselves of stocks was stronger than their willingness to hold them, causing the benchmark to go for a third day without a gain.
Investors were reluctant in risk-taking as the consumer inflation data of Africa’s largest economy for July was issued Monday morning, showing the nation’s headline inflation at 19.6 per cent, a level last seen almost seventeen years ago in 2005.
That figure matches the forecast of analysts at United Capital released before the inflation statistics became public.
The costs of bread and gas were the pressure points, the statistics office noted in its release. And the latest surge in cost of living rate will most likely be an invitation for a further interest rate hike when the monetary policy panel meets in September, a trajectory that does not often favour stocks.
Traders ignored the astounding half-year earnings performance of oil palm processor Presco and centenarian lender FBN Holdings as they put huge volumes of both firms’ shares to sale, tipping the market further into depreciation.
“We expect the bear market to persist as the impact of the increased benchmark interest rate continues to weigh down equity markets,” said analysts at investment bank and brokerage firm United Capital in an outlook note seen by PREMIUM TIMES.
“However, investors are expected to continue cherry-picking stocks with solid underlying fundamentals,” they added.
Market breadth, which gauges investors’ sentiment towards trade, closed in the negative as 19 decliners were recorded in contrast to 12 gainers.
The all-share index climbed down by 34.6 basis points to 49,629.4, while market capitalisation dropped to N26.8 trillion.
Nigerians stocks are up by 16.2 per cent so far this year.
TOP FIVE GAINERS
Neimeth topped the gainers’ chart, appreciating by 9.29 per cent to close at N1.53. Unity added 4.65 per cent to end trade at N0.45. FCMB advanced by 4.18 per cent to N3.49. Zenith rose to N21.70, notching up 2.12 per cent. Transcorp completed the top 5, climbing up by 0.93 to N1.08.
TOP FIVE LOSERS
Presco led laggards, declining by 9.97 to close at N142.6. Champion Breweries shed 7.79 per cent to end trade at N2.25. Flour Mills fell to N30.30, losing 6.63 per cent. Ikeja Hotel slumped to N1.20, recording 5.51 per cent depreciation. Dangote Sugar closed at N16, going down by 4.19 per cent.
TOP FIVE TRADES
A total of 210.8 million shares valued at N2.2 billion were traded in 4,122 deals.
Etranzact was the most active stock with 52.6 million units of its shares worth N119.8 million exchanging hands in 11 deals. FBN Holdings traded 23.1 million shares priced at N249.8 million in 144 transactions. UBA had 21.9 million shares valued at N153.5 million traded in 242 deals. GTCO traded 15.5 million shares estimated at N315.9 million in 289 transactions. Transcorp traded 12.7 million shares valued at N13.7 million in 103 deals.
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Nigerian stocks were weaker by 0.07 per cent on Monday as investors’ resolve to rid themselves of stocks was stronger than their willingness to hold them, causing the benchmark to go for a third day without a gain.
Investors were reluctant in risk-taking as the consumer inflation data of Africa’s largest economy for July was issued Monday morning, showing the nation’s headline inflation at 19.6 per cent, a level last seen almost seventeen years ago in 2005.
That figure matches the forecast of analysts at United Capital released before the inflation statistics became public.
The costs of bread and gas were the pressure points, the statistics office noted in its release. And the latest surge in cost of living rate will most likely be an invitation for a further interest rate hike when the monetary policy panel meets in September, a trajectory that does not often favour stocks.
Traders ignored the astounding half-year earnings performance of oil palm processor Presco and centenarian lender FBN Holdings as they put huge volumes of both firms’ shares to sale, tipping the market further into depreciation.
“We expect the bear market to persist as the impact of the increased benchmark interest rate continues to weigh down equity markets,” said analysts at investment bank and brokerage firm United Capital in an outlook note seen by PREMIUM TIMES.
“However, investors are expected to continue cherry-picking stocks with solid underlying fundamentals,” they added.
Market breadth, which gauges investors’ sentiment towards trade, closed in the negative as 19 decliners were recorded in contrast to 12 gainers.
The all-share index climbed down by 34.6 basis points to 49,629.4, while market capitalisation dropped to N26.8 trillion.
Nigerians stocks are up by 16.2 per cent so far this year.
TOP FIVE GAINERS
Neimeth topped the gainers’ chart, appreciating by 9.29 per cent to close at N1.53. Unity added 4.65 per cent to end trade at N0.45. FCMB advanced by 4.18 per cent to N3.49. Zenith rose to N21.70, notching up 2.12 per cent. Transcorp completed the top 5, climbing up by 0.93 to N1.08.
TOP FIVE LOSERS
Presco led laggards, declining by 9.97 to close at N142.6. Champion Breweries shed 7.79 per cent to end trade at N2.25. Flour Mills fell to N30.30, losing 6.63 per cent. Ikeja Hotel slumped to N1.20, recording 5.51 per cent depreciation. Dangote Sugar closed at N16, going down by 4.19 per cent.
TOP FIVE TRADES
A total of 210.8 million shares valued at N2.2 billion were traded in 4,122 deals.
Etranzact was the most active stock with 52.6 million units of its shares worth N119.8 million exchanging hands in 11 deals. FBN Holdings traded 23.1 million shares priced at N249.8 million in 144 transactions. UBA had 21.9 million shares valued at N153.5 million traded in 242 deals. GTCO traded 15.5 million shares estimated at N315.9 million in 289 transactions. Transcorp traded 12.7 million shares valued at N13.7 million in 103 deals.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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