The Nigerian equities market yesterday closed on a positive note as investors gained N67 billion, to sustain the previous positive momentum to four consecutive trading days.
The All-Share Index (ASI) increased by 128.12 absolute points, representing a growth of 0.50 per cent to close at 25,783.02 points. Similarly, the overall market capitalisation size gained N67 billion to close at N13.475 trillion.
The upturn was impacted by gains recorded in large and medium capitalised stocks, amongst which are; SEPLAT Petroleum Development Company (SEPLAT), Nigerian Breweries, MTN Nigeria Communications (MTNN), Mobil Nigeria and Flour Mills of Nigeria.
The Nigerian Monetary Policy Committee (MPC) in its fifth meeting in 2020 reduced the Monetary Policy Rate (MPR) by 100 basis points (bps) to 11.5 per cent; widen the Asymmetric corridor around the MPR to +100/-700bps; retain the Cash Reserve Ratio (CRR) at 27.5 per cent; and retain the Liquidity Ratio (LR) at 30.0 per cent.
The decision marks the second rate cut in 2020 and brings the MPR to its lowest level since February 2016.
On market impact, analysts at Cordros Capital Limited said: “The fixed income market is likely to see a downward adjustment in yields as a consequence, making the equities market even more attractive and worth a second look.”
Also, analysts at Afrinvest Limited said: “We expect bargain hunting to continue to drive positive performance in the market.”
Market sentiment, as measured by the market breadth, closed positive, as 21 stocks gained, relative to 14 losers. International Breweries and Prestige Assurance recorded the highest price gain of 10 per cent each, to close at N3.60 and 60 kobo respectively, while Cornerstone Insurance followed with a gain 8.33 per cent to close at 65 kobo, per share.
UACN Property Development Company went up by 5.26 per cent to close at N1.00, while SEPLAT appreciated by 3.90 per cent, to close at N400.00, per share. On the other hand, UACN Property Development Company led the losers’ chart by 9.09 per cent, to close at 30 kobo, per share. Royal Exchange followed with a decline of 6.90 per cent to close at 27 kobo, while Eterna lost 6.72 per cent to close at N2.50, per share.
NPF Micro Finance Bank shed 6.15 per cent to close at N1.22, while AIICO Insurance depreciated by 3.37 per cent to close at 86 kobo, per share.
The total volume traded increased by 58.05 per cent to 414.161 million shares, worth N6.280 billion, and traded in 3,793 deals. Transactions in the shares of Sterling Bank topped the activity chart with 85.205 million shares valued at N97.987 million. FBN Holdings (FBNH) followed with 82.744 million shares worth N413.7 million, while Access Bank traded 58.205 million shares valued at N366.707 million.
Zenith Bank traded 28.454 million shares valued at N480.21 million, while MTNN transacted 25.717 million shares worth N3.126 billion.