Nigeria’s equities market managed to close on a positive note despite the cautious sentiments lingering after the Monetary Policy Committee (MPC) decisions.
Nestle Nigeria Plc emerged as the star performer, leading the gainers’ chart and driving the market’s appreciation by 0.11%.
The market capitalisation gained N61 billion, the highest gain since the beginning of the week.
This upward momentum was fueled by increased investor interest, particularly in Nestle Nigeria Plc, Berger Paints Plc, and other penny stocks like Royal Exchange Plc.
Investors displayed confidence in Nestle Nigeria Plc, making bullish moves ahead of its annual meeting scheduled for the following day.
This optimism translated into substantial buy-side activities, contributing significantly to the overall positive performance of the market.
Despite the outcomes of the two-day MPC meeting, where the Central Bank of Nigeria (CBN) intensified tightening measures to combat inflation, investors remained undeterred.
The MPC’s decision to raise the policy rate by 150 basis points (bps) to 26.25% and retain other monetary policy parameters did not dampen investor enthusiasm.
Shares of key players like GTCO, Access Holdings, UBA, Transcorp, and Jaiz Bank were actively traded, reflecting the heightened activity in the market. In a total of 7,228 deals, investors exchanged 222,899,152 shares valued at N5.148 billion.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation both witnessed an uptick from the previous trading day’s lows, closing at 98,285.33 points and N55.597 trillion respectively.
Nestle Nigeria Plc saw a notable increase from N820 to N900, marking a substantial gain of N80 or 9.76%.
Berger Paints also experienced a positive trajectory, rising from N13.55 to N14.90, adding N1.35 or 9.96% to its value.
Similarly, Royal Exchange, a penny stock, saw an increase from 56 kobo to 60 kobo, reflecting a gain of 4 kobo or 7.14%.
The market’s ability to close in positive territory on Tuesday further bolstered the year-to-date (YtD) return, which now stands at an impressive 31.44%.
Despite the uncertainties surrounding MPC decisions and macroeconomic concerns, investor optimism and strategic investments continue to drive Nigeria’s equities market forward, showcasing resilience in the face of challenges.