The Nigerian stock market recorded a marginal gain of 0.1% last week as investors added N77 billion to their portfolio. The market’s capitalization closed at N59.292 trillion, up from N59.215 trillion. The Nigerian Exchange (NGX) All-Share Index also rose slightly to 97,829.02 points from 97,722.28 points. Analysts attribute the market’s cautious uptick to expectations of a further interest rate hike by the Central Bank of Nigeria (CBN) during this week’s Monetary Policy Committee (MPC) meeting.
Investors showed strong interest in major stocks like MTN Nigeria, Zenith Bank, and WAPCO, which recorded weekly gains of 1.18%, 3.32%, and 28.57%, respectively. However, not all sectors saw gains, as stocks like BUA Cement, Aradel, and GTCO posted losses. Trading activity was positive on three out of five sessions, reflecting investor optimism tempered by market uncertainties surrounding potential monetary policy adjustments.
With inflation rising sharply in recent months due to fuel price surges and flooding in key agricultural areas, analysts predict the CBN will increase the Monetary Policy Rate (MPR) by 25–50 basis points to combat inflation and maintain price stability. While global economies lean towards accommodating monetary policies, Nigeria’s inflation concerns demand a firmer stance, potentially pushing the MPR to 27.75% to achieve positive real returns and anchor inflation expectations.
