The Nigerian Stock Exchange (NSE) Market indicators on Tuesday downgraded by 0.44 per cent, amid losses posted by some highly capitalised stocks.
The News Agency of Nigeria (NAN) reports that the market capitalisation lost N39 billion or 0.44 per cent to close at N8.842 trillion compared to N8.881 trillion recorded on Monday.
In the same vein, the All-Share Index which opened at 25,671.55 shed 112.98 points or 0.44 per cent to close at 25,558.57.
Mr Sewa Wusu, the Head Research, SCM Capital Ltd., said the market drop was not due to retention of the rates by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).
Wusu said the rates retention was anticipated by analysts with an exception of the private sector that canvassed rates reduction.
He said reduction of rates at the moment would not augur well for the country’s economy.
Wusu attributed the stock market mix performance to loss of confidence by both local and foreign investors.
NAN reports that the MPC in consideration of the headwinds in the domestic economy and the uncertainties in the global environment decided by nine out of 10 members to retain the Monetary Policy Rate (MPR at 14 per cent alongside all other policy parameters.
Mr Godwin Emefiele, the CBN Governor said only one member voted to raise the MPR.
He said the committee in summary decided to retain the MPR at 14 per cent and the Cash Reserve Requirement at 22.5 per cent.
The CBN also retained the Liquidity Ratio at 30.00 per cent, while it retained the Asymmetric corridor at +200 and -500 basis points around the MPR.
An analysis of the price movement chart showed that Guinness topped the losers’ chart, dropping by N3.15 to close at N60.03 per share.
Forte Oil trailed with a loss of N1.30 to close at N46.53 and Ecobank Transnational Incorporated lost 40k to close at N9.40 per share.
Cadbury was down by 39k to close at N7.41, while Guaranty Trust Bank declined by 36k to close at N26.79 per share.
Conversely, Mobil Oil led the gainers’ table for the day, gaining N4.99 to close at N298.99 per share.
Julius Berger followed with a gain of N2 to close at N40 and Total grew by 45k to close at N275 per share.
NASCON gained 32k to close at N7.12, while Cement Company of Northern Nigeria appreciated by 20k to close at N4.70 per share.
NAN also reports that the volume of shares traded dropped by 68.96 per cent as investors bought and sold 153.72 million shares valued at N1.50 billion exchanged in 2,675 deals.
This was against a turnover of 495.24 million shares worth N2.55 billion transacted in 2,587 deals on Monday.
United Bank for Africa emerged the most traded stock, trading 51.89 million shares worth N276.67 million.
C.I Leasing followed with an account of 29.22 million shares valued at N9.61 million, while Dangote Sugar sold 15.18 million shares worth N93.94 million.
FCMB Group sold 11.65 million shares worth N93.94 million, while GT Bank exchanged 6.81 million shares valued at N182.21 million. (NAN)