HomeBUSINESSStock Market Sees Slight Gain as Focus Shifts to MPC Outcome

Stock Market Sees Slight Gain as Focus Shifts to MPC Outcome


WhatsApp Image 2024 05 16 at 1.03.11 PM

By Fasuyi Tolulope Samuel

Nigeria’s equities market experienced a modest gain of 0.05 percent, equivalent to N29 billion, on Monday as investors directed their attention to the ongoing Monetary Policy Committee (MPC) meeting.

The uptick in the market was primarily driven by investor interest in shares of Berger Paints and other top performers. Berger Paints saw its share price rise from N12.35 to N13.55, marking an increase of N1.20 or 9.72 percent.

The benchmark performance indicators for the market – the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation – improved from the previous trading day’s figures of 98,125.73 points and N55.507 trillion to 98,176.58 points and N55.536 trillion.

Meristem research analysts commented on the market’s activity, stating, “We expect the lacklustre trading activity to continue this week in the local bourse as we do not foresee any strong positive trigger to sway market direction. We also note the inherent bearish sentiment evidenced by the market breadth, which fell below 1.00x to 0.52x last week. Additionally, expectation of a sustained hawkish stance at the MPC meeting holding this week could further weaken investors’ appetite for equity assets.”

Despite the cautious outlook, the market’s positive close pushed the year-to-date (YtD) return to 31.30 percent.

On Monday, investors engaged in 8,439 deals, exchanging 405,661,682 shares valued at N6.688 billion. Shares of Access Holdings, Transcorp, Zenith Bank, Nigerian Breweries, and Jaiz Bank were actively traded.

Meristem research analysts further noted, “The Treasury bills auction this week may prompt an outflow of funds and a tepid inflow into the equities market, given the appeal of fixed-income yields. However, we anticipate investors to cherry-pick on some fundamentally strong tickers with attractive entry points.”

Futureview Research added, “This week, we anticipate cautious trading among equity investors as they await the outcome of the MPC meeting. We suggest that investors concentrate on fundamentally strong stocks.”

As the market waits for the MPC’s decision, the focus remains on managing expectations and identifying robust investment opportunities amidst the prevailing economic conditions.


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