By John Ikani
Nigeria’s stock market suffered a significant decline last week, shedding N1.32 trillion in value.
The market closed in the red on four out of five trading days, erasing earlier gains.
The downturn was largely attributed to the Central Bank of Nigeria’s (CBN) decision to increase the Monetary Policy Rate (MPR) to 26.75 percent.
This move, aimed at curbing inflation, made fixed-income investments more appealing compared to equities.
The Nigerian Exchange (NGX) All-Share Index and market capitalization dropped from 100,539.40 points and N56.929 trillion to 98,201.49 points and N55.605 trillion respectively.
While some stocks saw buying interest, the overall market trend was bearish. Investors reacted negatively to the performance of several companies in the first half of the year.
The industrial and banking sectors were particularly hard hit, losing 5.89 percent and 2.94 percent respectively. Consumer goods, insurance, and oil and gas stocks also experienced minor declines.
The market’s performance this month has been negative, with a 1.85 percent loss. However, the year-to-date return still stands at a positive 31.33 percent.
