Stock market suffers year-high loss of N29bn

By Nkiruka Nnorom

Activities in the nation’s local bourse started the third week of the year on a weak note after the inflation rate rose for the first time in eight months, with investors losing N29 billion.

The Consumer Price Index (CPI) for December 2021 by the National Bureau of Statistics (NBS) released yesterday showed that the inflation rate rose to 15.6 percent after eight months of decline, representing 0.2 percentage point increase when compared with 15.4 percent recorded in November 2021.

Resultantly, the local bourse turned bearish, thereby ending the two weeks of bullish sentiment.

Specifically, the market capitalisation slowed to N23.922 trillion from N23.951 trillion, representing a 0.12 percent decline.

Similarly, the Nigerian Exchange (NGX) Limited All Share Index (ASI) also declined by the same margin to settle at 44,399.66 points from 44,454.67 points on Friday. The negative sentiment was driven by profit taking witnessed in the newly listed BUA Foods, which fell by 6.4 percent.

Analysis of the price movement table showed that there were 21 losers against 14 gainers. Veritas Kapital led the decliners with 8.70 percent to close at N0.21, followed by Mutual Benefit Assurance, which fell by 7.41 percent to close at N0.25, while Cornerstone Insurance, BUA Foods and Courtville Business Solution (CBS) depreciated by 7.27 percent, 6.36 percent and 5.41 percent to close at N0.51, N61.80 and N0.35 respectively.