CBN’s rate cut buoys stock market to maintain positive momentum 

By Peter Egwuatu  

The Nigerian banal market ended past week connected a affirmative note, pursuing the Central Bank of Nigeria, CBN’s Monetary Policy Committee, MPC’s   cut successful the Monetary Policy Rate, MPR by 50 ground points, bps.

Consequently, the late-session gains connected the last 2 trading days much than offset the anemic outturns successful the earlier portion of past week.

Analysts noted that  

Investor sentiment was buoyed by the MPC’s archetypal complaint chopped successful 5 years, which drove renewed involvement successful equities.

It volition beryllium recalled that the MPC last  Tuesday, reduced the MPR by 50bps to 27.0%   from 27.50%, marking the archetypal displacement towards monetary argumentation easing successful 5 years. The Committee’s determination to chopped rates was chiefly driven by the sustained disinflationary trend,  continued stableness of the naira, and robust outer reserves.  

Analysis of trading connected the Nigerian Exchange Limited, NGX showed that the summation successful Zenith Bank by 9.1%, followed by Dangote Cement, which went up 1.7%, Stanbic IBTC gained 9.3%, WAPCO up by 4.0%   and International Breweries garnered 10.1% to thrust the NGX All-Share Index, ASI higher by 0.2% Week connected Week, W/W to adjacent astatine 142,132.02 points from 141.845.35 points the erstwhile week.   The  Month-to-Date, MtD and Year-to-Date, YtD returns improved to 1.3% and 38.1%, respectively.

The NGX marketplace capitalisation gained implicit N216 billion, W/W, to adjacent astatine N89.960 trillion from N89.744 trillion the erstwhile week.

Trading enactment besides strengthened, arsenic some measurement and worth precocious by 73.8% W/W and 257.7% W/W, respectively. Meanwhile, sectoral show was mixed, arsenic the Industrial Goods Index went up by 1.3%, followed by Consumer Goods Index 1.2%, and Banking Index   1.2% , portion the Insurance Index nosedived by

-0.9% and Oil & Gas Index by -1.6%.

Meanwhile, successful their projections for the week ahead, analysts astatine Cordros stated: “Looking ahead, we expect sentiment to amended further, supported by the much accommodative involvement complaint situation and the imaginable of accrued liquidity flows into equities”.

The station CBN’s complaint chopped buoys banal marketplace to support affirmative momentum  appeared archetypal connected Vanguard News.