Kayode Tokede
The stock market of the Nigerian Exchange Limited (NGX) gained N6 billion, even as Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) maintained status quo on its rates.
Members of the MPC voted unanimously to maintain the Monetary Policy Rate (MPR) at 11.5 per cent at its concluded meeting. Similarly, the Committee also voted to retain the Cash Reserve Requirement (CRR) at 27.5 per cent, liquidity ratio at 30.0 per cent and asymmetric corridor around the MPR at +100bps/-700bps.
Analysts at InvestmentOne Research said: “In our view, we posit that the committee’s decision to leave all key parameters unchanged is reasonable as hiking rates would impede the recovery we have seen in the economy while loosening rates might worsen inflationary pressures and exacerbate capital flows.
“Nonetheless, we posit that we might see an increase in benchmark interest rate when developed economies raise rates. Furthermore, potential inflationary pressures during the second half of the year may set the stage for a rise in interest rate.”
However, the NGX All-Share Index (ASI) increased by 11.24 basis points or 0.02 per cent to close at 45,939.51 basis points from 45,928.27 basis points. Similarly, the overall market capitalisation size gained N6 billion to close at N24.755 trillion from N24.749trillion the market opened for trading.
The upturn was impacted by gains recorded in large and medium capitalised stocks, amongst which are; SEPLAT Energy, Ecobank Transnational Incorporated (ETI), Champion Breweries, Nigerian Exchange (NGX) and Red Star Express.
As measured by market breadth, market sentiment was positive as 20 stocks gained relative to 15 losers. Courteville Business Solutions recorded the highest price gain of 10 per cent to close at 55 kobo, per share. ETI followed with a gain 9.94 per cent to close at N9.95, while Academy Press rose by 9.72 per cent to close at 79 kobo, per share.
Champion Breweries went up by 8.05 per cent to close at N2.55, while Regency Alliance Insurance appreciated by 5.26 per cent to close at 40 kobo, per share. On the other hand, C & I Leasing led the losers’ chart by 10 per cent to close at N3.78, per share. Prestige Assurance followed with a decline of 9.80 per cent to close at 46 kobo, while Cornerstone Insurance shed 3.77 per cent to close at 51 kobo, per share.
Mutual Benefits Assurance lost 3.70 per cent to close at 26 kobo, while UPDC Real Estate Investment Trust (UPDC) […]
