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NGX Slides by N83bn as inflation fears grow

THE Nigerian stock market ended the first trading session of the week on a negative note, with selling pressure on some large-cap stocks halting the previous week’s advance.

Following the return of the bear to the stock market after a strong purchasing interest that resulted in N1.2 trillion capital gains last week, investors’ fortunes plummeted by more than N83 billion on Monday.

Profit-taking was seen in Lafarge WAPCO, MTN Nigeria, and International Breweries shares during today’s trading session, resulting in a 0.3 percent drop in the benchmark index.

The Nigerian Exchange ASI finished at 52,944.09 points, despite strong selloffs and a record spike in headline inflation, according to National Bureau of Statistics data.

According to NBS, the headline inflation rate increased to 16.38 percent in April from 15.92 percent in March 2022. As a result, the month-to-date and year-to-date returns have fallen to +6.7% and +23.9%, respectively.

According to stockbrokers, the overall volume of trades grew by 23.3 percent to 374.18 million units priced at N4.96 billion and exchanged in 6,854 deals, according to data from the equities report.

TRANSCORP was the most traded stock on the NGX by volume, with 88.59 million units exchanged, while SEPLAT was the most traded stock by value, with N1.41 billion transacted.

Sector performance was widely negative, following a similar pattern. The consumer goods index fell 0.7 percent, the industrial goods index fell 0.6 percent, and the banking index fell 0.2 percent, putting three sectors in negative territory.

Meanwhile, the Insurance and Oil & Gas indices both increased by 2.5 percent and 0.6 percent, respectively. Market sentiment was positive (1.3x), as 25 tickers gained opposed to 20 losers, as assessed by market breadth.

The best-performing stocks of the day were NNFM (+9.6%) and TRANSCORP (+8.5%), while the worst-performing stocks were CHAMPION (-9.8%) and GLAXOSMITH (-9.5%).

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