Nigeria's Equity Market Sees N398bn Gains In Holiday-Shortened Week

Equity Market Rises 0.11% As Investors Flock To Nestle Nigeria Plc Ahead Of Annual Meeting

3 weeks ago
1 min read

Nigeria’s equities market saw a modest gain of 0.11% on Tuesday, driven by heightened investor interest in Nestle Nigeria Plc.

The company’s upcoming annual meeting on May 22 prompted increased buying activity, propelling the market to add N61 billion, marking its strongest performance this week.

Investors showed strong support not only for Nestle Nigeria Plc but also for other stocks like Berger Paints Plc and Royal Exchange Plc, particularly amidst the backdrop of decisions from the Central Bank of Nigeria’s (CBN) monetary policy committee (MPC) meeting.

Following the MPC meeting, the CBN announced measures aimed at curbing inflation. Key decisions included a 150 basis points hike in the policy rate to 26.25%, maintaining the cash reserve ratio for banks at 45%, and keeping the asymmetric corridor unchanged at +100bps/-300bps, alongside a constant liquidity ratio of 30%.

“The decision to tighten monetary policy reflects our commitment to stabilizing the economy amidst persistent inflation and currency challenges,” remarked a CBN official during the meeting.

READ ALSO: Equity Market Sees Lowest Point Despite Bullish Start To 2024

Market participants actively traded shares of GTCO, Access Holdings, UBA, Transcorp, and Jaiz Bank, with a total turnover of 222,899,152 shares valued at N5.148 billion in 7,228 deals.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose from 98,176.58 points to 98,285.33 points, accompanied by an increase in market capitalization from N55.536 trillion to N55.597 trillion. Notably, Nestle Nigeria Plc’s stock surged from N820 to N900, reflecting a 9.76% increase, while Berger Paints rose from N13.55 to N14.90, a 9.96% gain. Similarly, Royal Exchange saw its share price climb from 56 kobo to 60 kobo, marking a 7.14% increase.

The positive close on Tuesday further boosted the year-to-date return to 31.44%, signaling optimism among investors despite broader economic uncertainties.

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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