Stocks gain N8bn as MPC raises policy rate

Nigeria’s stock market benchmark performance indicator increased slightly by 0.01 percent at the close of trading on Tuesday.

The market’s mild gain came after the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) raised its benchmark interest rate by 25 basis points to 27.50 percent as it continued fight against rising rate of inflation.

Shares of newly listed Haldane McCall (+9.98 percent), Sunu Assurances (+9.80 percent), Japaul Gold (+9.72 percent), Prestige Assurance (+9.64 percent), and Neimeth Pharmaceuticals (+9.55 percent) helped push the market higher. Stocks recorded cumulative gain of N8billion at the close of trading on Tuesday at the Nigerian Exchange Limited (NGX).

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The Olayemi Cardoso-led Monetary Policy Committee (MPC) announced the MPR raise after a two-day meeting held Monday and Tuesday in Abuja. The CBN had in September raised the Monetary Policy Rate (MPR) by 50 basis points to 27.25 percent despite concerns around petrol price increase, which has been triggering renewed surge in prices of goods and services after two consecutive declines in commodity prices.

Analysts at Lagos-based Vetiva research had ahead of Tuesday’s outcome of MPC meeting retained a cautious outlook on the stock market amid sell-side pressure in the banks, as well as a lack of drivers to push aggressive buy-side action in the market.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation increased from preceding day’s low of 97,626.27 points and N59.169 trillion to 97,639.88 points and N59.177 trillion. In 9,305 deals, investors exchanged 552,110,061 shares worth N8.031billion. Haldane McCall, Tantalizer, UBA, Prestige Assurance and FBN Holdings were actively traded.