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Investors Sell Off Stocks After CBN Rate Hike

The local bourse weakened by 0.09 per cent on Wednesday due to profit-taking by investors after the Central Bank of Nigeria (CBN) increased the key interest rate by 100 basis points to 17.5 per cent at the end of the first Monetary Policy Committee (MPC) meeting of 2023.

It was observed that blue-chip stocks like GTCO, Nigerian Breweries and others were battered during the session, contributing to the downfall of the market.

From an analysis of the market data, the consumer goods sector went down by 1.21 per cent, the insurance counter dropped 0.13 per cent, the industrial goods index gained 0.36 per cent, and the banking space grew by 0.32 per cent, with the energy sector closing flat.

At the close of business, the All-Share Index (ASI) decreased by 45.14 per cent to 52,612.55 points from 52,657.69 points, while the market capitalisation shed N24 billion to end at N28.657 trillion compared with the previous day’s N28.681 trillion.

Amid the bearish outcome, the market breadth finished positive as there were 20 price gainers and 14 price losers, representing a strong investor sentiment.

Nigerian Breweries lost 9.90 per cent to trade at N41.85, Caverton depreciated by 9.52 per cent to 95 Kobo, Champion Breweries declined by 8.00 per cent to N4.60, Coronation Insurance shed 6.67 per cent to 42 Kobo, and Nigerian Exchange (NGX) Group fell by 5.93 per cent to N25.40.

On the flip side, Mutual Benefits gained 10.00 per cent to quote at 33 Kobo, Unilever Nigeria appreciated by 9.91 per cent to N12.20, C&I Leasing grew by 9.84 per cent to N3.46, ABC Transport went up by 9.68 per cent to 34 Kobo, and International Energy Insurance increased by 8.16 per cent to 53 Kobo.

Business Post reports that Geregu Power was the most traded stock as it transacted 23.8 million units, Access Holdings traded 17.3 million units, Transcorp exchanged 16.7 million units, Chams sold 15.3 million units, and UBA transacted 12.7 million units.

A total of 182.4 million shares worth N4.8 billion exchanged hands in 3,470 deals during the session, in contrast to the 143.7 million shares worth N1.8 billion in 4,078 deals on Monday, indicating a decline in the number of deals by 14.91 per cent, and an increase in the trading volume and value by 26.90 per cent, and 166.67 per cent, respectively.

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