By Niyi Jacobs
The Nigerian Exchange (NGX) experienced a downturn, with equities investors losing approximately N47 billion, as traders reacted negatively to the Central Bank of Nigeria’s (CBN) decision to increase the benchmark interest rate by 50 basis points to 26.75%.
The All-Share Index decreased by 82.48 basis points, representing a 0.08% decline, closing at 100,486.12. Market activities slowed, with total volume and value traded reducing by 16.32% and 2.46%, respectively.
The bearish trend was attributed to the CBN’s monetary policy tightening, which led to sell-offs in medium and large-scale stocks like WEMABANK, VITAFOAM, and ZENITHBANK. However, some stocks like IKEJAHOTEL and LINKASSURE experienced price appreciation.
The market breadth closed negative, recording 14 gainers and 27 losers. Sectoral performance showed declines in the banking and insurance sectors, while the consumer goods sector experienced a slight growth. The equities market capitalisation declined by N46.70 billion to close at N56.95 trillion.
