Nigerian stocks fell further Friday amidst sustained profit-taking due to the fear of an adjustment of the policy rate by the Monetary Policy Committee.
The All-Share Index fell 0.24 per cent or 97.16 points, to close at 41,001.99.
Market capitalisation stood at N21.448 trillion after losing N51 billion.
The MPC of the Central Bank of Nigeria’s first meeting of the year is slated for Monday and Tuesday.
Ambrose Omordion, the Chief Operating Officer of InvestData Ltd., attributed the bearish trend to fear of likely rate cut by MPC.
Usually, rising interest rates cause businesses and consumers to cut spending, resulting in lower company earnings, and expectedly, a fall in stock prices. The reverse is also true.
“Historically, February is a dicey month for the stock market, despite being the period for early filers of full year earnings reports,” Mr Omorodion said.
“The recent slow or profit booking is as a result of positive close of 2020 and fear of rate adjustment at the forthcoming MPC meeting, ahead of earnings reporting season,” Mr Omordion said.
He said the fear was heightened by the latest FGN Bonds that reopened on adjusted and juicier rates for long-tenored bonds.
Mr Omordion noted that the relative stability in the market was due to the dominance of domestic institutional investors.
On Friday, NCR led gainers in the Nigerian bourse, growing by 9.86 per cent to close at N3.12. Cutix gained 9.71 per cent to close at N2.26. Champions rose by 9.55 per cent to N1.95. Multiverse leapt to N0.24, notching up 9.09 per cent in the process. RT Briscoe completed the top 5, climbing up by five per cent to N0.21.
Livestock topped the losers’ table, declining by 10 per cent to close at N2.52. Cornerstone shrank by 10 per cent to end at N0.72. Mutual Benefits fell to N0.45, losing 10 per cent. Niger Insurance dipped to N10, recording 0.27 per cent loss. Consolidated Hallmark closed at N0.37, going down by 9.76 per cent.
Transcorp was the most preferred stocks today with 169.276 million of its stocks worth N195.889 million traded in 493 deals.
Also, 47.280 million units of Japaul Gold shares priced at N44.955 million exchanged hands in 243 transactions. UBA had 36.641 million shares valued at N321.807 million traded in 318 deals.
FBN Holdings traded 34.310 million shares estimated at N250.823 million in 218 transactions. Zenith traded 25.712 million shares valued at N680.798 million in 375 deals.
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