Local Stock Market Suffers 0.52% Decline Amid Policy Changes


Local Stock Market Faces Setback Amid Policy Changes

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This week, the local stock market encountered a setback as investors reacted to various factors, including the recent policy rate hike by the Central Bank of Nigeria (CBN) and the latest macroeconomic data indicating a slow but positive GDP growth of 2.98% for the first quarter of 2024. The market dynamics, coupled with the outcome of the midweek Nigerian Treasury Bills auction, contributed to a 0.52% week-on-week decline in the composite benchmark index, which fell to 97,612.51 points, breaking its previous range-bound pattern.

Market capitalization also saw a 0.52% decrease, dropping to N55.22 trillion from N55.51 trillion the previous week, resulting in a loss of N290.1 billion in investors’ wealth. Despite gains on only two out of the five trading sessions, the year-to-date return for the benchmark index marginally decreased to 30.5%.

Trading activity exhibited mixed results, with the weekly traded volume increasing by 20.22% week-on-week to 1.98 billion units across 38,487 deals, though the traded value fell by 4.60% week-on-week to N40.72 billion. Market breadth remained negative, with 53 stocks declining compared to 25 gainers.

In terms of sectoral performance, most indices closed positively. The NGX-Oil and Gas, NGX-Consumer Goods, and NGX-Industrial indices reported gains driven by positive price movements in select stocks, while the NGX-Banking and NGX-Insurance indices experienced declines.

Among the top performers of the week were Berger Paints, REGALINS, and INTENEGINS, while DEAPCAP, FTN COCOA, and TRANSCORP were among the worst performers.

Looking ahead, the market sentiment is expected to remain weak as investors digest the latest economic data and the impact of recent policy changes. Despite the current market weakness, oversold conditions and mixed technical indicators suggest potential buying opportunities for value investors. However, caution is advised, and investors are encouraged to focus on stocks with sound fundamentals.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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