NSE Records ₦259.4 Billion Gain as MPC Holds Benchmark Interest Rate

NSE Records ₦259.4 Billion Gain as MPC Holds Benchmark Interest Rate

The Nigerian Stock Exchange (NSE) records ₦259.4 billion gain on Tuesday as the Monetary Policy Committee holds benchmark interest rate, translating to low yield in the fixed income market.

The benchmark index rose 121 basis points (bps) to close at 41,584.94 points following strong demand in AIRTELAF (+7.6%), MTNN (+0.5%) and WAPCO (+3.8%).

Consequently, year to date return improved to 3.3% while market capitalisation increased to ₦21.8 trillion.

Activity level advanced as volume and value traded rose 40.5% and 110.8% to 467.9 million units and ₦5.6 billion respectively.

The most traded stocks by volume were TRANSCORP (45.9 million units), MANSARD (34.7 million units) and SOVRENINS (26.4 million units).

AIRTELAF (₦1.2 billion), ZENITH (₦501.0 million) and DANGCEM (₦494.6 million) topped by value.

Afrinvest said performance across sectors under its coverage was bullish as 4 indicators gained against 2 that lost.

The AFR-ICT index led gainers, up 3.9% owing to buying interest in AIRTELAF (+7.6%) and MTNN (+0.5%).

Trailing, the Consumer Goods and Insurance indices advanced 0.5% and 0.4% respectively following price appreciation in FLOURMILL (+6.3%), UNILEVER (+2.3%), MANSARD (+2.2%) and PRESTIGE (+8.0%).

Similarly, gains in WAPCO (+3.8%) drove the Industrial Goods index 0.3% higher. On the flip side, the Oil  & Gas and Banking indices lost 5.3% and 0.1% respectively due to sell-offs in SEPLAT (-9.3%), OANDO (-1.8%), ZENITH (-0.9%) and STERLNBANK (-2.5%).

Investor sentiment as measured by market breadth improved to 1.8x from 0.7x recorded previously as 32 stocks advanced against 18 losers.

RTBRISCOE (+10.0%), CHAMPION (+9.8%) and UNIVINSURE (+9.5%) were the top-performing tickers.

Meanwhile JOHNHOLT (-10.0%), SEPLAT (-9.3%) and ACADEMY (-9.1%) were the losers.

“We expect the positive momentum to continue in subsequent trading sessions”, Afrinvest said. 

Read Also: Who Benefits More in Low Interest Rate Environment?

NSE Records ₦259.4 Billion Gain as MPC Holds Benchmark Interest Rate