Nigeria’s equities market sustained its upward momentum on Tuesday, gaining 0.47 percent following the Central Bank of Nigeria’s (CBN) decision to maintain key interest rates at the conclusion of its two-day Monetary Policy Committee (MPC) meeting.
The year-to-date (YtD) return on the Nigerian Exchange (NGX) rose to 28.69 percent as of Tuesday, positioning the market among the top performers in Africa.
The MPC retained the Monetary Policy Rate (MPR) at 27.50 percent, held the asymmetric corridor around the MPR at +500/-100 basis points, kept the Cash Reserve Ratio (CRR) for deposit money banks at 50 percent, retained the CRR for merchant banks at 16 percent, and maintained the liquidity ratio at 30 percent.
Investors continued to show confidence in Nigerian stocks, buoyed by ongoing foreign exchange (FX) reforms, declining fixed income yields, the banking sector’s recapitalisation drive, and expectations of interim dividend payouts by blue-chip firms.
Key gainers on the day included Dangote Sugar Refinery, The Initiates Plc, Sovereign Trust Insurance, Nigerian Enamelware, and University Press—all of which contributed to the market’s positive performance.
- Dangote Sugar Refinery rose by 10 percent, climbing from N51 to N56.10.
- The Initiates Plc gained 9.97 percent, moving from N11.03 to N12.13.
- Sovereign Trust Insurance advanced by 9.84 percent, rising from N1.22 to N1.34.
- Nigerian Enamelware appreciated by 9.83 percent, increasing from N20.35 to N22.35.
- University Press gained 9.82 percent, closing at N6.15 from an opening price of N5.60.
At the close of trading, the NGX All-Share Index (ASI) rose from 131,826.77 points to 132,451.73 points, while market capitalisation increased from N83.393 trillion to N83.789 trillion.
Heavily traded stocks included Access Holdings, Ellah Lakes, UBA, GTCO, and Lafarge Africa. The session recorded 32,365 deals involving 762.6 million shares valued at N26.43 billion.
Analysts at Coronation Research anticipate continued capital rotation into equities, driven by easing yields in the fixed income space and persistent investor interest in undervalued banking stocks.
However, analysts at Vetiva Research warned of potential market fatigue. In their July 21 commentary, they noted signs of underlying weakness and questioned whether sidelined sectors such as consumer goods and insurance would attract renewed investor interest.
“If rotation fails and the ASI slips below the 131,000-point threshold, a short-term pullback may be imminent,” the firm stated.
