Nigerian Equities Market Sees Negative Returns Amidst Global Stock Market Downturn

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Nigerian Equities Market,Benchmark Interest Rate,Central Bank Of Nigeria

Following the recent increase in the benchmark interest rate by the Central Bank of Nigeria, the Nigerian equities market has experienced three consecutive weeks of negative returns. This decline is in line with the global stock market trend, as geopolitical crisis and rising oil prices have dampened investors' appetite. While major stock indices in the US, UK, Japan, and Europe have all declined, China's SSE Index has seen a slight increase.

On the heels of the recent increase in the benchmark interest rate to 24.75 per cent by the Central Bank of Nigeria , Nigerian equities market has seen three consecutive weeks of negative returns.

In United States, the Dow Jones Industrial Average and S & P 500 Index dropped by 3.0 per cent and two per cent. United Kingdom’s FTSE 100 Index declined by 0.6 per cent. Japan’s Nikkei 225 Index depreciated by 3.4 per cent. The STOXX Europe Index, which broadly tracks the European markets, dropped by 1.4 per cent. However, China’s SSE Index rose by 0.9 per cent.The All Share Index - the value-based index that tracks all share prices at the Nigerian Exchange , closed weekend at 103,437.

FBN Holdings led the decliners with a loss of 14.21 per cent to close at N30.50. Sterling Financial Holdings Company followed with a drop of 12.96 per cent to close at N4.70. Julius Berger Nigeria dropped by 11.36 per cent to close at N58.50. CWG declined by 10 per cent to close at N6.75. C & I Leasing lost 9.76 per cent to close at N3.70 while Thomas Wyatt Nigeria dipped by 9.63 per cent to close at N1.97 per share.On the positive side, Cutix led the advancers with a gain of 22.

The three most active stocks were Abbey Mortgage Bank Plc, Tourist Company of Nigeria Plc and Zenith Bank Plc. They altogether accounted for 2.175 billion shares worth N20.667 billion in 2,594 deals, representing 59.10 per cent and 35.70 per cent to the total equity turnover volume and value.

 

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