Nigeria’s equities market posted a slight gain of 0.03% on Tuesday, equivalent to a N20 billion increase in market capitalization. This mild uptick followed the outcome of the 300th Monetary Policy Committee (MPC) meeting, which concluded with a decision to maintain all key monetary policy indicators. The cautious optimism reflected investors’ renewed confidence, especially in blue-chip stocks like Nestle Nigeria Plc, which saw a 10% surge in its share price.
During the session, Nestle’s stock rose from N1,331 to N1,464.10, contributing significantly to the market’s upward movement. However, not all stocks followed the same trajectory, as Aradel Holdings led the losers with an 8.55% drop. Despite this mixed performance, the broader sentiment turned slightly positive as investors digested the MPC’s policy stance.
The MPC retained the Monetary Policy Rate (MPR) at 27.50%, along with other major indicators such as the Cash Reserve Ratio (CRR) and liquidity ratio. Analysts from Meristem Research interpreted the committee’s decision as a reflection of stabilizing macroeconomic conditions, a decelerating inflation rate, and the ongoing bank recapitalisation process. They projected sustained investor interest, especially in fundamentally sound stocks.
Although trading opened with significant sell pressure, the market’s resilience ensured a rebound by close, reinforcing year-to-date gains of 6.61%. The Nigerian Exchange All-Share Index rose slightly from 109,697.83 to 109,730.47 points, while the market capitalization also inched up to N68.965 trillion.
Analysts at Vetiva Research observed that broad-based buying interest persisted, particularly in the consumer goods sector. They noted that continued momentum in key and mid-cap stocks could keep the market buoyant, even as sentiments remain cautious in the banking space. A total of 497 million shares valued at N13.2 billion were traded in 18,795 deals, with Fidelity Bank, UBA, and United Capital among the most active stocks.
Source: Business day