Investors Gain N396bn as CBN Retains Rates at 27.5%
By Ebunoluwa Emmanuel,
The Nigerian stock market recorded a N396 billion gain on Tuesday following the Central Bank of Nigeria’s Monetary Policy Committee (MPC) decision to maintain key interest rates, a move that boosted investor confidence and sustained the market’s bullish trend.
The market capitalisation rose by N396 billion or 0.47 per cent, closing at N83.789 trillion compared to N83.393 trillion recorded the previous day.
Similarly, the All-Share Index (ASI) advanced by 624.96 points or 0.47 per cent to settle at 132,451.73 from 131,826.77 on Monday.
The positive sentiment was largely driven by strong buying interest in medium and large-cap stocks such as Dangote Sugar, The Initiates Plc, Sovereign Trust Insurance, Enamelware, and University Press, among others.
Market breadth closed in the green, with 36 gainers against 34 decliners.
Top Gainers:
Dangote Sugar led the chart with a 10 per cent increase, closing at N56.10. The Initiates Plc followed with a 9.97 per cent rise to N12.13 per share.
Sovereign Trust Insurance appreciated by 9.84 per cent to N1.34, while Enamelware added 9.83 per cent to close at N22.35.
University Press also gained 9.82 per cent to finish at N6.15 per share.
Top Losers:
On the losing side, Ellah Lakes and Legend Internet both fell by 10 per cent, closing at N9.90 and N5.31 respectively.
FTN Cocoa Processors dropped 9.91 per cent to N6.09, Meyer declined 9.79 per cent to N17.05, and Thomas Wyatt Nigeria Plc shed 9.73 per cent to settle at N3.06.
Market Activity:
A total of 771.65 million shares valued at N26.78 billion were exchanged in 32,734 deals, an improvement from Monday’s 706.04 million shares worth N21.56 billion in 30,750 deals.
Access Corporation led the volume chart with 102.88 million shares worth N2.77 billion.
Ellah Lakes followed with 56.73 million shares valued at N586.4 million, while United Bank for Africa traded 48.28 million shares worth N2.28 billion.
Guaranty Trust Holding Company recorded 32.75 million shares worth N3.18 billion, and WAPCO traded 30.5 million shares valued at N3.87 billion.
Monetary Policy Update:
The CBN’s MPC concluded its two-day meeting by keeping the Monetary Policy Rate (MPR) unchanged at 27.50 per cent.
The committee also maintained the asymmetric corridor around the MPR at +500bps/-100bps, the Cash Reserve Ratio (CRR) for deposit money banks at 50 per cent, CRR for merchant banks at 16 per cent, and the liquidity ratio at 30 per cent.
