Market News

 By : Helen Oji

Following gains recorded by 31 stocks, the Nigerian Exchange Limited (NGX) rebounded yesterday, as market capitalisation gained N21 billion following buying interest in Nestle Nigeria Plc and 30 others.

This is as the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at conclusion of its 300th meeting retained the MPR at 27.5 per cent, maintained the asymmetric corridor around the MPR at +500bps/-100bps, held the CRR for deposit money banks at 50 per cent, retained the CRR for merchant banks at 16 per cent, and maintained the liquidity ratio at 30 per cent.

The all-share index (ASI) gained by 32.64 points, representing a growth of 0.03 per cent to close at 109,730.47 points. Also, market capitalisation increased by N21 billion to close at N68.966 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are Nestle Nigeria, Unilever Nigeria Vitafoam Nigeria, CAP and Nigerian Breweries.

On market outlook, Afrinvest Limited said: “We expect the market to extend the positive close driven by bargain hunting activities.”

Vetiva Dealings and Brokerage said: “Looking ahead to tomorrow, the market’s direction will likely hinge on whether the recent momentum in consumer goods can offset continued weakness in banks and oil & gas. So far this week, trading has been mixed.

“With market breadth turning negative today for the first time in two weeks, investors may be more selective heading into midweek. Sustained buying in large-cap consumer stocks could help stabilize the tape, but without broader participation, upside may remain limited.”

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Investor sentiment, as measured by market breath closed slightly negative as 31 stocks gained, while 32 lost. Nestle Nigeria, Regency Alliance Insurance and Tripple Gee & Company recorded the highest price gain of 10 per cent each to close at N1,464.10, 66 kobo and N2.20 respectively.

Tantaliser followed with a gain of 9.88 per cent to close at N2.78, while Multiverse Mining & Exploration up by 9.60 per cent to close at N9.70 kobo.

On the other hand, Berger Paints led the losers’ chart by 9.98 per cent to close at N21.20, per share. Mutual Benefits Assurance followed with a decline of 9.8 per cent to close at 92 kobo, while ABC Transports declined by 9.77 per cent to close at N2.40 kobo.

Aradel Holdings depreciated by 8.55 per cent to close at N460, while Caverton Offshore Support Group declined by 7.09 per cent to close at N3.80 kobo.

Also, the total volume traded rose 0.21 per cent to 497.06 million units, valued at N13.213 billion, and exchanged in 18,795 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 60.181 million shares valued at N1.121 billion.

United Bank for Africa (UBA) followed with 36.397 million shares worth N1.259 billion, while Custodian Investment traded 35.644 million shares valued at N698.804 million.

Tantalizer traded 27.587 million shares valued at N76.435 million, while United Capital sold 26.743 million shares worth N496.398 million