The Nigerian stock market opened the new week in red, down 0.07% or 19 billion naira as investor interest in equities waned amid a rising inflation rate.
“We expect the local stock exchange to remain in a lull ahead of the next MPC meeting scheduled for September 26-27. We recommend that investors and fund managers continue to select stocks with strong underlying fundamentals amid an overall bearishly dominated stock market,” United Capital research analysts said in their Sept. 19 note. to investors.
The positive year-to-date (YtD) market return declined to 15.74%. The All-Share Index (ASI) and market capitalization fell from previous trading day highs of 49,475.42 points and 26,686 billion naira to 49,440.21 points and 26,667 billion naira respectively . In 3,386 transactions, investors traded 67,369,216 shares valued at N1.480 billion. FBN Holdings, Zenith Bank, GTCO, Mutual Benefit and Sovereign Trust were among the top 5 stocks traded.
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University Press led the decliners league after falling from N1.80 to N1.63, down 17kobo or 9.44%, while Etranzact Plc led the advances, after falling from N2.91 to N3.20, up 29kobo or 9.97%.
Additionally, Meristem Research analysts said, “We expect a drop in buying interest in the equity market following the recently released inflation figure. The inflation rate climbed to 20.52% above the market consensus of 20.25% and this could influence the decision of the monetary authorities at their next meeting.
“The expectation of a rate hike would keep investor activity in the equity market muted, hence buying interest would be low. We are also looking at the bond auction this week, which could still stifle liquidity in the system and cause a flow of funds from the equity market, therefore we expect the market to close in the negative zone,” Meristem analysts added.