Stocks Rise 0.39% Against Expectations
Nigerian equities market, on Monday, registered its highest single-day gain since September, shocking analysts with 0.39 percentage gains against the backdrop of ongoing meeting of central bank’s Monetary Policy Committee (MPC).
While the All Share Index of the local bourse rebounded, recovering some prior week’s losses to settle at 49,218.35 points, the market capitalization gained ₦103.42billion to close at ₦26.55trillion.
Renewed investor interest in BUACEMENT which appreciated +5.43 per cent, Zenith Bank with +0.25 per cent and GTCO with +1.89 per cent were the primary drivers of the overall market’s strong performance. Consequently, the year-to-date (YTD) return rose to 15.22 per cent.
Analysis of today’s market activities showed trade turnover settled lower relative to the previous session, with the value of transactions declining by 73.22 per cent.
A total of 119.28million shares valued at ₦854.76million were exchanged in 3,580 deals. Courtville Business Solutions led the volume chart with 24.36million units traded at zero price gain, while Zenith Bank with +0.25 per cent gain led the value chart in deals worth ₦177.13million.
On the gainers and losers table, a total of 16 stocks shed prices led by Academy Press which lost maximum -10 percent, while Multiverse Plc gained +9.93 percent to lead eleven 11 others on the leader’s table.
Equities traders who spoke with our correspondent had maintained negative stance of last week’s bearish sessions, saying that the dispositions of equities investors was one of “wait and see” the outcome of ongoing MPC meeting of the Central Bank of Nigeria.
Tajudeen Olayinka and David Adonri, both senior dealing members of the Nigerian Exchange, had predicted a sustained bearish outlook given expectations that the MPC might hike the Monetary Policy Rate otherwise called interest rate at the end of its meeting on Tuesday.
Rates hike above the current 14 percent means that equities investors might exit the market and migrate to the fixed income market which compensates for the inflation rate currently at 20.52 percent.
Comments are closed.