Nigerian stock market falls 6.67% as investors panic over scary economic forecast

By Dipo Olowookere

The Nigerian stock market fell 6.67% week-on-week last week after 29 stocks came under heavy selling pressure caused by macroeconomic uncertainty.

Last week, investors were faced with a chilling economic forecast from Moody’s, which raised doubts about the ability to Nigerian banks to meet their obligations due to the foreign exchange (forex) crisis in the country.

The latest global rating agency downgraded Nigeria’s rating out of fear that the government will struggle to increase its profits despite the rise in the price of crude oil on the world market.

Equity traders at the Nigerian Exchange (NGX) Limited reacted to those fears last week, quickly reducing their exposure to the asset class so as not to burn their fingers.

The data showed that the All-Share Index (ASI) and market capitalization depreciated by 6.67% to 44,396.73 points and 24,182 billion naira, respectively.

Similarly, all the other indices ended lower, with the exception of the NGX CG, banking, retirement, NGX AFR banking, NGX AFR Div Yield, NGX MERI growth, NGX MERI Value and industrial indices, which appreciated by 0. .17%, 0.15%, 0.58%. , 2.10%, 2.45%, 1.22%, 3.12% and 3.22% each, the ASeM, growth and sovereign bond indices having closed flat.

Business post reports that Customs Street printed 33 winning prices, 29 losing prices and 95 flattering prices during the week, compared to the 25 winning prices, 24 losing prices and 108 flattering prices recorded the previous week.

Airtel Africa was the worst performing stock as its value fell 27.10% to NEM 1,312.20, NEM Insurance lost 9.98% to trade at N4.42, Beta Glass also fell depreciated 9.98% to N41.50, Royal Exchange fell 9.78% to 83 Kobo, and MRS Oil lost 9.76% to close at N12.95.

The best performing stock of the week was Academy Press, which rose 11.45% to N1.46, Fidelity Bank gained 10.14% to sell at N3.80, United Capital rose appreciated by 10.13% at 12.50 N, BUA Cement improved by 9.73% at 62.00 N, and PZ Cussons elongated by 9.52% at 9.20% N.

During the five-day trading week, traders bought and sold 938.020 million shares worth N16.701 billion in 15,700 trades, compared to 491.815 million shares worth N11.922 billion. naira traded in 14,350 transactions a week earlier.

Financial stocks dominated the business chart with 501.278 million units valued at N5.080 billion completed in 8,279 deals, accounting for 53.44% and 30.42% of total deal volume and value respectively.

ICT stocks lagged with 316.347 million units valued at N8.729 billion executed in 1,249 trades, while energy stocks saw the sale of 28.244 million units valued at N983.561 million in 846 transactions.

A breakdown said CWG, GTCO and Fidelity Bank attracted the most deals, with 490.324 million units worth N2.905 billion traded in 2,860 deals, contributing 52.27% and 17 respectively. .39% to the volume and total value of transactions.