Trading at the Nigerian Exchange Limited (NGX) closed on a positive note on Tuesday, as gains in 31 stocks, led by Nestle Nigeria Plc, added ₦21 billion to the market capitalisation. This rebound comes amid investors’ response to the Central Bank of Nigeria’s (CBN) decision to maintain its current monetary policy stance.
The All-Share Index (ASI) rose slightly by 32.64 points, or 0.03%, to close at 109,730.47 points, while the market capitalisation increased from ₦68.945 trillion to ₦68.966 trillion.
This mild rally was largely driven by buying interest in medium and large capitalised stocks, including Nestle Nigeria, Unilever Nigeria, Vitafoam Nigeria, CAP Plc, and Nigerian Breweries.
The Monetary Policy Committee (MPC) of the CBN, at its 300th meeting, kept the Monetary Policy Rate (MPR) unchanged at 27.5%, with an asymmetric corridor of +500/-100 basis points. It also retained the Cash Reserve Ratio (CRR) at 50% for deposit money banks, 16% for merchant banks, and kept the liquidity ratio at 30%. These decisions signal a continued tight monetary policy environment aimed at managing inflation and stabilising the naira.
Despite the market’s gain, market breadth closed slightly negative, as 32 stocks declined, while 31 advanced — a signal that investor sentiment is becoming more cautious.
Top gainers included:
- Nestle Nigeria Plc, up 10% to ₦1,464.10
- Regency Alliance Insurance, up 10% to ₦0.66
- Tripple Gee & Company, up 10% to ₦2.20
- Tantalizer Plc, up 9.88% to ₦2.78
- Multiverse Mining & Exploration, up 9.60% to ₦9.70
Biggest losers were:
- Berger Paints, down 9.98% to ₦21.20
- Mutual Benefits Assurance, down 9.8% to ₦0.92
- ABC Transport, down 9.77% to ₦2.40
- Aradel Holdings, down 8.55% to ₦460.00
- Caverton Offshore Support Group, down 7.09% to ₦3.80
Meanwhile, trading activity was marginally higher, with the total volume of stocks traded increasing by 0.21% to 497.06 million units, valued at ₦13.21 billion, across 18,795 deals.
Most traded stocks by volume included:
- Fidelity Bank Plc, 60.18 million shares worth ₦1.12 billion
- United Bank for Africa (UBA), 36.40 million shares worth ₦1.26 billion
- Custodian Investment Plc, 35.64 million shares valued at ₦698.8 million
- Tantalizer Plc, 27.59 million shares worth ₦76.4 million
- United Capital Plc, 26.74 million shares valued at ₦496.4 million
Market outlook remains cautiously optimistic. Analysts at Afrinvest Limited expect continued bargain hunting to keep the market stable, while Vetiva Dealings and Brokerage notes that the direction of the market will largely depend on whether gains in the consumer goods sector can offset persistent weakness in banking and oil & gas stocks.
However, with investor sentiment appearing fragile — as indicated by the negative breadth — analysts warn that the rally may not be sustainable unless there is broader participation across multiple sectors.
