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NGX pulls back after spike in inflation rates reading

YESTERDAY, the Nigerian Exchange (NGX) pulled back from additional gains after the National Bureau of Statistics issued its high inflation rate estimate for April.

The stock market suffered two days of losses in response to the headline inflation rate of 16.82 percent, lowering the year-to-date return. The local bourse was in bear territory, according to market statistics, as profit-taking in MTNN (-1.7%) dragged the benchmark index down.

The Nigerian Exchange All-Share Index, for example, dropped 0.4 percent to 52,756.62 points. As a result, month-to-date and year-to-date gains have reduced to +6.3 percent and +23.5 percent, respectively, according to Cordros Capital.

The overall amount of trades grew by 253.8 percent to 1.32 billion units worth N7.72 billion in 6,449 transactions. FCMB was the most actively traded stock, with 775.09 million units and N2.96 billion exchanged, respectively.

The Consumer Goods (-0.5 percent), Banking (-0.4 percent), Oil & Gas (-0.3 percent), and Insurance (-0.2 percent) indices all posted losses, while the Industrial Goods (+0.1 percent) indices closed higher.

Market sentiment was negative (0.8x) as 26 tickers lost relative to 20 gainers, as assessed by market breadth. FLOURMILL (-9.2 percent) and GLAXOSMITH (-8.4 percent) were the biggest losers of the day, while PZ (+10.0 percent) and BERGER (+9.7 percent) had the biggest gains.

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