Business
Rising inflation pushes stock market down by N655bn
The market capitalization of the Nigerian Exchange Ltd (NGX) dropped by N655 billion, following the hike in the nation’s inflation rate to 20.77 percent.
It was reported that the National Bureau of Statistics (NBS) on Monday announced the inflation rate for September, standing at 20.77 percent as against 20.5 percent in August.
The market capitalization lost N656 billion or 2.53 percent to close at N25.254 trillion from N25.909 trillion recorded on Friday.
Similarly, the All Share Index (ASI) decreased by 1,203.09 basis points or 2.53 percent to close at 46,365.95 basis points compared with 47, 569.04 posted on Friday.
Similarly, the stock market’s weak performance was driven by selloffs in Airtel Africa, depreciating by 10 percent.
Analysts at United Capital Plc said bargain hunting would continue as investors looked forward to the third quarter ending September, thus cherry-picking stocks with great underlying fundamentals.
READ ALSO: Just in: Inflation hits 20.77% in September, highest in 17 years
“However, we maintain that the broader equities market will remain in a lull pending the release of Q3, 2022 results,” United Capital said.
However, market breadth closed positive, with 14 gainers versus five losers. PZ Cussons Nigeria recorded the highest price gain of 9.52 percent to close at N9.20, per share.
University Press followed with a gain of 9.33 percent to close at N1.64, while Courteville Business Solutions appreciated by 4.35 percent to close at 48 kobos, per share.
Cutie went up by 3.50 percent to close at N2.07, while Wapic Insurance appreciated by 2.86 percent to close at 36 kobos, per share.
On the other hand, Airtel Africa led the losers’ chart by 10 percent to close at N1,620.00, per share. Sovereign Trust Insurance followed with a decline of 7.14 percent to close at 26 kobos, while AIICO Insurance went down by 7.02 to close at 53 kobos, per share.
Dangote Sugar Refinery lost 2.80 percent to close at N15.60, while Fidson Healthcare shed 2.51 percent to close at N8.94, per share.
The total volume traded rose by 10.89 percent to 137.983 million shares, worth N4.317 billion, and traded in 3,234 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) topped the activity chart with 33.715 million shares valued at N609.863 million.
Courteville Business Solutions followed with 26.138 million shares worth N12.545 million, while Fidelity Bank traded 19.980 million shares valued at N69.022 million. Sterling Bank traded 8.930 million shares valued at N13.767 million, while United Bank for Africa (UBA) transacted 6.526 million shares worth N45 million.