Stock Market Trades Sideways As MPC Maintains Status Quo

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The Nigerian stock market fell marginally by 0.01 per cent as the Monetary Policy Committee (MPC) retained all policy parameters in order to further boost economic growth given the recently printed 4.03 per cent growth in GDP.

The Monetary Policy Committee (MPC), at the end of yesterday’s meeting, unanimously elected to retain all policy parameters; Monetary Policy Rate(MPR) at 11.5 per cent; Asymmetric corridor around the MPR at +100/-700bps; Cash Reserve Ratio (CRR) at 27.5 per cent; and Liquidity Ratio (LR) at 30.0 per cent.

In summary, the All-Share Index (ASI) declined by 4.99 absolute points, representing a decrease of 0.01 per cent, to close at 43,255.14 points. However, the overall market capitalisation value gained N1 billion to close at N22.577 trillion.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; Dangote Sugar Refinery, NEM Insurance, International Breweries, UACN Property Development Company (UPDC), and AXA Mansard Insurance.

However, market breadth was positive as 19 stocks gained relative to 15 losers. Honeywell Flour Mills recorded the highest price gain of 9.95 per cent to close at N4.09, per share. University Press followed with a gain of 8.70 per cent to close at N2.50 and Consolidated Hallmark Insurance  went up 7.41 per cent to close at 58 kobo, per share.

Glaxosmith up by 5.79 per cent to close at N6.40, while FTN Cocoa processors appreciated by five per cent  to close at 42 kobo, per share. On the other hand, UPDC led the losers’ chart by 9.35 per cent to close at N1.26, per share. NEM Insurance followed with a decline of 9.27 per cent to close at N1.86, while AXA Mansard Insurance lost 5.11 per cent to close at N2.23, per share.

Chams declined 4.55 per cent to close at 21 kobo, while Royal Exchange shed 4.08 per cent to close at 47 kobo, per share.

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The total volume of trades decreased by 90.9 per cent to 217.973 million units, valued at N2.908 billion, and exchanged in 4,158 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) topped the activity chart with 36.187 million shares valued at N919.633 million. FBN Holdings (FBNH) followed with 31.544 million shares worth N387.278 million, while Zenith Bank  traded 13.434 million shares valued at N327.245 million.

Access Bank traded 13.091 million shares valued at N121.510 million, while Honeywell Flour Mills transacted 9.842 million shares worth N40.253 million.