Stock market nosedives 1.15%, as CBN, MPC retain MPR

Owing to the dearth of bullish triggers in Nigeria’s equity market investors have continued to take profit, plunging the Nigerian Stock Exchange All-Share Index (ASI) to a new week low of 34,951.27 points.

Worried about the downturn in the market in recent trading sessions, market analysts had before the CBN’s MPC’s 258th meeting, predicted that monetary policy rates will be retained,

but noted that a reduction in interest rate or loosening the tight policies could serve as a trigger needed to stimulate the economy faster and result in an uptick in the equities market.

The equities market, however, closed 1.15 per cent lower on Tuesday, extending the negative trend to the third consecutive session, while the market capitalisation settled at N12.048 trillion from N12.188 recorded on Monday.

The losses recorded in the industrial and consumer goods contributed significantly to the decline in the market on Tuesday, as Nestle, Dangote Cement, International Breweries, Nigerian Breweries and Dangote Sugar recorded losses of N19.7, N7, N1.87, N1 and 10kobo, respectively to lead the day’s laggards table.

On a positive note, Presco recorded the highest price gain for the day, it was followed by Nascon, Oando, Unilever and Zenith Bank that gained N1.94, 60 kobo, 19 kobo, 19 kobo and 11 kobo respectively.

The volume of shares exchanged in 3,120 deals increased to 500.3 million units sold in contrast to 107.148 million shares sold in2,484 deals on Monday, while the total value of shares sold increased to N3.6bn against N1.4bn previously recorded.

Continental Reinsurance was the most active, exchanging 190.5 million shares valued at N333.3m.

Sterling Bank followed with the sale of 83.3 million shares worth N80.8m, while Access traded 51 million shares valued at N492m.

Axa Mansard sold 30.1 million shares worth N60.2m; and Transcorp traded 18.9 million shares valued at N24.0m.