Business

Stock Market maintains bullish trend ahead of MPC meeting

The Nigerian stock market continues to show positive momentum on the Nigerian Exchange Limited (NGX) amid speculation regarding the upcoming monetary policy decisions by the Central Bank of Nigeria’s Monetary Policy Committee (MPC).

The MPC is set to announce the new Monetary Policy Rate (MPR), which serves as the benchmark for financial institutions to determine interest rates for customer loans. Analysts predict that the CBN may maintain the current rate due to a recent slowdown in inflation.

Last week, the NGX All Share Index (ASI) increased by 0.8%, closing at 98,247.99 points, up from 97,456.62 points the previous week. Additionally, the market capitalization rose by N455 billion, finishing at N56.466 trillion compared to N56.001 trillion the prior week.

Strong demand for key stocks such as Geregu Power, which gained 15.00% week-on-week, along with Fidelity Bank (4.20%) and MTNN (3.95%), contributed to the market’s positive performance.

Regarding the MPC meeting, analysts at Cordros Research noted: “As in previous meetings, we expect the Committee to evaluate both global and domestic economic developments since the last policy meeting. Globally, major central banks are easing monetary policies as inflation approaches target levels. Domestically, Nigeria’s GDP growth remains robust, while headline inflation has decreased for two consecutive months.

“However, near-term pressures could lead to a rise in inflation due to a significant increase in the base price of PMS (+50.5% to NGN855.00/litre). Additionally, recent efforts by the CBN to stabilize the naira amid ongoing demand pressures suggest a cautious approach. Therefore, we anticipate that the CBN will likely hold the interest rate steady to support economic stability, with the MPC expected to maintain the MPR at 26.25% and keep other policy parameters unchanged.”

Looking ahead, analysts at Invest Data Consulting Limited commented: “We expect mixed sentiment to persist as investors reposition their portfolios in anticipation of the quarter-end and Q3 earnings season, alongside profit-taking and bargain hunting ahead of half-year results from dividend-paying stocks. Portfolio adjustments continue, with investors seizing opportunities during pullbacks to invest in value.”

Attah Mike

Attah Mike is in charge of Infotech at IDOMA VOICE. He is an AI enthusiast. A photoshop expert and trained photographer/videographer. He studied Computer Science at FPN

Recent Posts

Probe panel: Ortom defeats Benue state govt at appeal court

The Court of Appeal, Makurdi Division, on Thursday set aside the ruling of the Benue…

12 hours ago

Police take action over murder of lawyer Mark Ofikwu in Otukpo

The Benue State Police Command has confirmed the tragic killing of prominent Otukpo-based lawyer and…

13 hours ago

BREAKING: Reps reject bill proposing six-year single tenure for president, governors

A bill proposing a six-year single term for the office of the president and state…

15 hours ago

BREAKING: Senate approves Tinubu’s ₦1.77 Trillion loan request to address 2024 Budget deficit

The Senate has approved President Bola Tinubu’s ₦1.77 trillion ($2.2b) loan request following a voice…

15 hours ago

Finland arrests Simon Ekpa, four others over terrorism financing

Finnish-Nigerian separatist leader, Simon Ekpa, and four others have been arrested in Finland for involvement…

15 hours ago

BREAKING: Biafra: Simon Ekpa arrested in Finland

Finnish-Nigerian separatist agitator, Simon Ekpa, and four other persons have been arrested in Finland over…

16 hours ago