Stock Investors Lose N24bn As Lending Rate Rises
The Nigerian stock market on Tuesday reacted sharply to the hike in interest rate as market capitalisation swiftly fell against the gain recorded on Monday.
As a result, stock investors lost N24bn as they sold off Geregu Power Plc and 13 others.
The All-Share Index dipped by 45.14 absolute points, representing a decline of 0.09 per cent to close at 52,612.55 points.
Similarly, the overall market capitalisation size lost N24bn to close at N28.657tn.
The downtrend was caused by losses recorded in large and medium capitalised stocks such as Geregu Power, Nigerian Breweries, Nigerian Exchange Group, Champion Breweries, and Industrial and Medical Gas Nigeria.
As measured by market breadth, market sentiment was positive, as 20 stocks gained relative to 14 losers. Mutual Benefits Assurance recorded the highest price gain of 10 per cent, to close at 33 kobo, per share.
Unilever Nigeria followed with a gain of 9.91 per cent to close at N12.20 kobo, per share, while C&I Leasing rose by 9.84 per cent to close at N3.46 kobo, per share.
Associated Bus Company went up by 9.68 per cent to close at 34 kobo, while International Energy Insurance appreciated by 8.16 per cent to close at 53 kobo, per share.
On the other hand, Nigerian Breweries led the losers’ chart by 9.90 per cent, to close at N41.85 kobo, per share.
Caverton Offshore Support Group followed with a decline of 9.52 per cent to close at 95 kobo, while Champion Breweries lost 8.00 per cent to close at N4.60 kobo, per share.
Wapic Insurance lost 6.67 per cent to close at 42 kobo, while NGX Group shed 5.93 per cent, to close at N25.40 kobo, per share.
The total volume traded increased by 26.9 per cent to 182.397 million units, valued at N4.822bn, and exchanged in 3,470 deals.
Transactions in the shares of FBN Holdings topped the activity chart with 19.656 million shares valued at N229.718m.
Chams followed with 11.218 million shares worth N3.110m, while Guaranty Trust Holding Company traded 10.990 million shares valued at N264.993m.
Transnational Corporation of Nigeria traded 10.574 million shares valued at N12.814m, while Sterling Bank transacted 10.201 million shares worth N15.933m.