Stock Market Sheds N772bn in July as Investors Switch to Fixed Income Securities – THISDAYLIVE

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Stock Market Sheds N772bn in July as Investors Switch to Fixed Income Securities Kayode Tokede The stock market arm of the Nigerian Exchange Limited (NGX) in July 2022 fell by N772 billion to N27.163 trillion as investors moved th

The stock market arm of the Nigerian Exchange Limited in July 2022 fell by N772 billion to N27.163 trillion as investors moved their assets to the fixed income markets due to the recent hike in the benchmark monetary policy rate .In July, the market witnessed weeks of sentiment trading by investors amid impressive corporate earnings for half the year ended June 30, 2022 by some fundamental companies.

For instance, the NGX Consumer Goods Index with 8.13 per cent drop to 573.27 basis points recorded the highest decline in July, followed by Insurance Index that dropped by 6.33 per cent to close July at 167.04 per cent. The cement giant saw its stock price dropping by N10.00 or 3.6 per cent to close trading in July at N265.00 from N275.00 it opened for trading.

“So, expect to see in the coming months higher cost of borrowing, widening government deficit, slower economic growth, rising unemployment and bearish stock market.” “For equity market, he said the repricing of shares will hold very temporarily, as prices subsequently recover when yields stagnate in the fixed income market, saying “this is also subject to capacities of listed companies to adjust to the variability of costs and cost pressures in the short run. This is the current behaviour in the Nigerian financial markets.

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Interest Rate Hike Crashes Stock Market Investments By N782bnThe key performance indicator of the Nigerian Stock Exchange (NSE), the All-Share Index (ASI), went down by 2.82 per cent to close at 50,370.25 on July 31,
مصدر: LeadershipNGA - 🏆 4. / 77 اقرأ أكثر »