Market capitalisation of the Nigerian stock market shrunk to N36.9 trillion last week as it sheds N409.2 billion to profit taking last week. This translates to a 1.1 per cent loss in its All Share Index (ASI).

“Away from our projection, the domestic equities market closed the week on a bearish note as the NGX-ASI recorded a week-on-week (w/w) loss of 1.1 per cent to close at 67,395.74 points.

“Consequently, market capitalisation shed N409.2 billion to N36.9 trillion, while Year-to-Date (YTD) return declined to 31.5 per cent against the previous 33.0 per cent), Said analysts at Afrinvest.

Activity level however improved as average volume and value traded rose 15.3 per cent and 4.5 per cent to 586.5 million units and N9.5 billion w/w respectively.

On the global scene, the equities market ended last week on a positive note, as the MSCI World Index posted a gain of 1.1 per cent w/w.

The positive performance of the MSCI world index came on the back of renewed buy interest in major advanced markets following two consecutive weeks of bearish dominance. In the US, economic data released this week indicated that headline CPI rose by 0.6 per cent in August – the biggest monthly jump Year-to-Date (YTD), following a 0.3 per cent increase in core CPI amid increase in energy prices…

At the money market, pressures continue to mount on the naira in spite of the increase in the prices of crude oil.

Last week, the average price of Brent crude oil rose 2.3 per cent w/w to reach $92.10/bbl. – its highest level since November 2022. The price rally was driven by supply-demand imbalance on the back of extended production cuts by Saudi Arabia and Russia, increased demand in China amid improving macroeconomic data, and disruptions in Libyan oil exports due to severe flooding…

Last week, buying interest dominated the secondary segment of the money market. System liquidity improved 20.6 per cent w/w to print at N499.5 billion following inflows from primary market repayment worth N204.0 billion. Nevertheless, OPR and OVN rate rose 5.8ppts and 5.7ppts to close at 23.6 per cent and 24.4 per cent respectively.


https://blueprint.ng/stock-market-loses-n409-2bn-to-profit-taking-in-one-week/

Jinjar..