The decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to lower benchmark interest rate went down well with investors at the Nigerian equity market as it appreciated 0.31 per cent on Tuesday.
The MPC at the end of its two-day meeting in Abuja reduced the Monetary Policy Rate (MPC) also known as benchmark interest from 12.5 per cent to 11.5 per cent, adjust the asymmetric corridor to +100/-700 around the MPR, but retained both the Cash Reserve ratio (CRR) and Liquidity ratio at 27.5 per cent and 30 per cent respectively.
The All-Share Index rose 0.31 per cent to 25,654.90 points on the back of gains in MTNN, Dangote Sugar (+0.8%) and FBNH, while market capitalisation gained ₦28.8billion to close at ₦13.4 trillion, moderating the year’s loss to -4.4 per cent.
REDSTRAREX, CHIPLC and TRANSEXPRESS led the nine gainers, while UBN, CORNERSTONE and LINKASSURE topped 14 other laggards.
The volume and value of equities traded rose 33.6 per cent and 158.8 per cent respectively to 262.1million units and ₦4.4billion and the most traded stocks by volume were Zenith Bank, FBNH and Transcorp, while MTNN, Zenith Bank and Presco led by value.
The AFR-ICT index was the lone gainer, up 1.2 per cent following price accretion in MTNN.
On the other hand, the Insurance index was the worst-performing indicator, losing 1.1 per cent due to price decline in CORNERSTONE and LINKASSURE.
The Banking and Oil & Gas indices were also down by 0.6 per cent and 0.2 per cent respectively, on the back of sell pressures in UBN, ACCESS and OANDO.
Similarly, the Industrial and Consumer Goods indices were both down 0.1 per cent due to losses in INTBREW and DANGCEM.