The Nigerian Exchange Limited (NGX) closed last week on a negative note, reflecting the impact of the Central Bank of Nigeria’s (CBN) recent decision to raise the Monetary Policy Rate (MPR) by 25 basis points to 27.5%. This marks the sixth consecutive hike in 2024, totaling an 875 basis point increase from 225 basis points in 2023. The market’s major performance indicator, the NGX All-Share Index (ASI), dropped by 0.3%, closing at 97,507.87 points. Notable sell-offs in major stocks like Seplat (-6.0%), GTCO (-3.0%), and MTN Nigeria (-1.2%) weighed heavily on the market, despite gains from WAPCO (+7.4%), Oando (+6.7%), and FBNH (+3.5%).
Market activity remained robust, with trading volumes and values rising by 63.6% and 52.8%, respectively, week-on-week. However, sectoral performance was mixed, as the Oil & Gas Index fell by 1.9%, Consumer Goods by 0.4%, and Banking by 0.3%. On the other hand, the Insurance Index grew by 1.2%, and Industrial Goods by 0.8%. Monthly analysis revealed a marginal market drop of 0.1%, with a N64 billion loss in market capitalization, which stood at N59.207 trillion as of November’s close. Year-to-date (YTD) returns remained positive, with a 30.4% gain overall.
Analysts forecast cautious trading in the near term due to a lack of strong positive catalysts. Experts from Cordros Research anticipate restrained market activity, while InvestData Consulting predicts mixed sentiments as investors adjust portfolios amid profit-taking, bargain hunting, and strategic positioning for the year-end.
