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Equities investors lose N519b as CBN becomes hawkish

THE average return on fixed income securities increased after the Central Bank of Nigeria’s (CBN) monetary policy committee (MPC) raised benchmark interest by 150 basis points to 13% following two years of dovish stance.

In the face of growing headline inflation, which continues to dampen portfolio returns, fixed income investors have been waiting for catalysts to drive yield repricing.

Nigeria’s high inflation rate broadened real returns on fixed income instruments, however the yield curve has recently shifted but not enough to meet the amount of price rise.

Overall, the stock market fell by 518.55 billion dollars, closing at 28.01 trillion dollars. Market activity, on the other hand, was bullish, with total volume and value rising by 173.48 percent and 149.79 percent, respectively.

According to a market report from Atlass Portfolios Limited, about 720.19 million units worth $8.87 billion were exchanged in 6,096 transactions. In terms of volume, ETI was the most traded stock, accounting for 35.91 percent of all trades, followed by JAIZBANK (10.87 percent), ACCESSCORP (8.44 percent), UACN (7.27 percent), and MANSARD (7.27 percent) (3.59 percent ).

ETI was also the most traded stock in terms of value, accounting for 33.45% of all trades on the exchange. With a price increase of ten percent, JAPAULGOLD topped the advancers’ list.

MRS (9.70 percent), WAPIC (4.76 percent), FCMB (2.94 percent), CAP (1.90 percent), NGXGROUP (0.67 percent), STANBIC (0.29 percent), SEPLAT (0.01 percent), and nine (9) others trailed the firm closely.

Base on market statistics, 38 stocks depreciated, with GUINNESS leading the pack with a price decline of 10% to close at 88.2. MTNN was down 7.63%, VITAFOAM was down 5.06 percent, FBNH was down 3.35 percent, and GTCO was down 2.13 percent.

UCAP was also down 1.10 percent, DANGCEM was down 1.00 percent, OANDO was down 0.81 percent, FOURMILL was down 0.54 percent, and ZENITHBANK was down 0.21 percent. READ: CBN’s Hawkish Balance Sheet Policy Sends Bond Market Down 26%.

Data from the local bourse also reveals that market breadth was mostly negative, with 17 gainers and 38 losers, with sectoral performance ending on a sour note.

Consumer Goods (-1.21 percent), Insurance (-1.09 percent), Industrial Goods (-0.61 percent), Banking (-0.39 percent), and Oil & Gas (-0.32 percent) were the five NGX sectors that closed lower than the previous session.

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