Market cap drops N76bn as CBN cut rates

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Investors in the capital market reacted Tuesday to the reduction in lending rate with market capitalisation on the Nigeria Stock Exchange (NSE) dipping by N76 billion.

The capitalisation dropped to N9.488 trillion from N9.564 trillion it closed on Monday, reflecting profit taking by investors.

Central Bank of Nigeria (CBN) at the end of its Monetary Policy Committee (MPC) meeting cut the Cash Reserve Ratio (CRR) from 25 percent to 20 percent and the Monetary Policy Rate (MPR) from 13 to 11 percent.

The market benchmark, All-Share Index decline by 0.80 per cent to 27,596.81 basis points from 27,820.49 basis points yesterday while the YTD worsened to -20.37 per cent.

Although negative investor sentiment continued to burden the NSE ASI, market activity increased as both trade volume and value rose by 14per cent and 38per cent to 176 million units and N3.06billion, respectively as the 3,011 deals took place, compared to 2,663 yesterday.

All sectors closed negative again today with the Industrial sector the worst performer, down 1.57per cent driven by 2.47 per cent decline in Dangote Cement.

The Oil and Gas sector also declined by 0.56 per cent driven by Oando Plc that depreciated by 5.17 per cent.

Neimeth gained 8.89 per cent to top the 13 gainers charter while Tiger Brand dropped by 9.09 per cent, formerly Dangote Flours recorded the highest decline of 22 losers resulting in a market breath index of 0.09 decline.

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