•Investors lose N64bn

By Nkiruka Nnorom

Investors in the stock market lost N64 billion as the market reversed its five weeks upward movement last week following the sell pressure.

The market had recorded gain in one of the five trading sessions, resulting in 0.23 per cent depreciation in the All share Index (ASI) to 52,979.96 points from 53,098.46 points in the previous week.

Similarly, the market capitalisation of all listed equities fell to N28.562 trillion from N28.626 trillion, representing a 0.22 per cent decline.

Selloffs in MTN Nigeria Communication Plc (-4.82%), Flourmills of Nigeria Plc (-10.74%) and Lafarge Africa Plc (-8.28%) were the major drags on the overall market.

Consequently, the Month-toDate (MTD) and Year-to-Date (YTD) returns moderated to +6.7 per cent and +24.0 per cent, respectively.

Sectoral performance was mixed as the insurance (+3.6%) and the oil and gas (+0.3%) sectors advanced, while the banking (-1.2%), consumer goods (-1.0%) and the industrial goods (-0.6%) sectors recorded declined.

Meanwhile, the market is expected to be will be guided by the outcome of the upcoming Monetary Policy Committee (MPC) meeting scheduled to hold this week.

Already, analysts are anticipating a 50bps hike in the Monetary Policy Rate (MPR) given the contractionary monetary policy stance among global central banks and the indirect impact of the Russia/Ukrane crisis on the domestic inflationary pressure.

In their prognosis, analysts at Cordros Capital said: “We believe investors will be focused on the outcome of the MPC meeting scheduled to hold this week to gain further clarity on the movement of yields in the fixed income market.

“As a result, we envisage cautious buying actions from investors interested in cyclical stocks with attractive dividend yields.”


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