Capital market reacts to outcome of MPC meeting, down by 0.55%

Trading at the Nigerian Stock Exchange (NSE) on Tuesday closed on a downward trend as the market reacted negatively to the outcome of the Monetary Policy Committee (MPC) meeting.

The News Agency of Nigeria (NAN) reports that MPC, at its meeting in Abuja on Tuesday, kept benchmark interest rate at 11 per cent and fixed naira exchange rate at N197.

MPC also held the Cash Reserve Ratio (CRR) for commercial banks at 20 per cent. NAN reports that market indicators, following the meeting, dropped by 0.55 per cent due to price losses by some blue chip equities.

The market capitalisation shed N45 billion to close at N8.196 trillion against N8.241 trillion recorded on Monday.

Similarly, the All-Share Index lost 131.56 points or 0.55 per cent to close at 23,832.08 against 23,963.64 posted on Monday.

Alhaji Rasheed Yusuuf, the Managing Director, Trust Yield Securities Ltd., attributed the development to portfolio investors’ reaction to the Central Bank of Nigeria’s retention of naira exchange rate at N197.

Yusuuf said that the foreign investors had been clamouring for naira devaluation.

He attributed the market trend reversal to activities of portfolio investors that still remained in the market.

NAN reports that Nestle topped the losers’ chart, dropping by N16.16 to close at N708.85 per share. Unilever came second with a loss of N2.05 to close at N39.04, while GlaxoSmithKline declined by N1.40 to close at N26.60 per share.

Nigerian Breweries fell by N1.16 to close at N101.64, while Stanbic IBTC depreciated by 30k to close at N13 per share. On the other hand, Seplat led the gainers’ chart with N6.34, to close at N170.88 per share.

7UP followed with a gain of N6 to close at N196, while Cadbury gained N1.34 to close at N15.92 per share. Julius Berger improved by N1.10 to close at N43.10, while PZ chalked up 75k to close at N21 per share.

Also, the volume of shares traded closed lower with an exchange of 142.85 million shares valued N1.64 million transacted in 3,298 deals.

NAN reports that this was in contrast with 215.18 million shares worth N2.10 million exchanged in 3,853 deals on Monday. Zenith Bank, for the second consecutive day, remained the toast of investors, trading 17.82 million shares valued N216.11 million in 234 deals.

GT Bank followed with 15.44 million shares worth N246.95 million traded in 282 deals, while FBN Holdings sold 14.51 million shares valued N59.90 million in 301 deals.

UBA accounted for 10.22 million shares worth N30.46 million transacted in 125 deals, while Access Bank exchanged 10.12 million shares valued N41.62 million achieved in 109 deals.