- Equities Market Goes Bearish as MPC Retains Rates
The Nigerian equities market shed N39bn on Tuesday as the Monetary Policy Committee of the Central bank of Nigeria kept the main interest rate at 14 per cent.
At the second MPC meeting for the year 2017, the committee voted to retain the Monetary Policy Rate at 14 per cent; Cash Reserve Ratio at 22.5 per cent; maintain the asymmetric corridor at +200 basis points and -500bps; and also maintain the liquidity ratio at 30 per cent.
The equities market reversed the prior day’s gain at the close of trading, after declining by 0.44 per cent, to settle the year-to-date return at -4.90 per cent. There were 13 gainers and 24 losers.
Julius Berger Nigeria Plc was the top gainer for the day, advancing by 5.26 per cent to close at N40. Livestock Feeds Plc followed, appreciating by 4.76 per cent, with Nascon Allied Industries Plc, Cement Company of Northern Nigeria Plc and Fidson Healthcare Plc also appreciating by 4.71 per cent, 4.44 per cent and 4.3 per cent, respectively.
On the losers’ half were Cadbury Nigeria Plc, which dropped by five per cent and topped the underperformers’ chart, to close at a year low of N7.41. Guinness Nigeria Plc, Meyer Nigeria Plc, Nigerian Aviation Handling Company Plc and Jaiz Bank Plc also recorded 4.99 per cent, 4.82 per cent, 4.76 per cent and 4.51 per cent losses, respectively.
The NSE banking, insurance, food/beverage and oil/gas indices closed the day on negative notes, recording respective declines of 1.96 per cent, 0.33 per cent, 0.14 per cent and 0.04 per cent. The NSE industrial index, however, advanced marginally by 0.05 per cent.