Business

Gains in Nestle, others lift index further by 0.1%, despite rate hike

Despite rate hike, investors increased appetite in the shares of Nestle and Berger Paints lifted the All-Share index further by 0.1 per cent yesterday. Market capitalisation of listed equities appreciated by 0.11 per cent to N55.597 trillion from N55.536 trillion reported the previous day.

The All Share Index also increased by 108.75 basis points to 98285.33 points from 98176.58 points traded on Monday. Yesterday uptrend was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nestle, Berger Paints, NGX Group, Zenith, MTN N, Fidelity Bank, UACN and Oando.

The Central Bank of Nigeria’s Monetary Policy Committee (CBN-MPC) yeaterday, increased the policy rate to 26.25 per cent, which did not deter the upward trend. However, analysts at Vetiva Dealing and Brokerage, said: “Earlier in the day, the Central Bank of Nigeria announced a 150bps hike in its MPR rate to 26.25 per cent; that said, we anticipate further sell-side action in the equity market as fixed income securities become increasingly attractive for investors.”

On the price movement chart, Julius Berger led gainers table with 9.96 per cent to close at N14.90 kobo. Nestle Nigeria Plc followed with a gain of 9.76 per cent to close at N900. Sovereign Trust Insurance gained 8.11 per cent to 40 kobo. Royal Exchange gained 7.14 per cent to close at 60 kobo.Tantalizer also added 6.38 per cent to close at 50 kobo. On the contrary, International General Insurance recorded the highest loss declining by 9.70 per cent to close at N1.49 kobo. Deap Capital trailed with a loss of 8.33 per cent to close at 44 kobo, UPDC declined by 7.69 per cent to close at N1.20 kobo. Wapic Insurance fell by 7.25 per cent to close at 64 kobo. Sterling Bank was down by 6.25 per cent to close at N4.20 kobo.

Volume of trades declined by 182.762 million, representing 45.05 per cent as investors bought shares worth N5.148 billion in 7228 deals against 405.661 million worth N6.688 billion exchanged hands the previous day in 8439 deals. Transactions in the shares of GTCO Plc led market activities with 40.638 million shares valued at N1.616 billion. AccessCorp followed with account of 27.516 million shares valued at N469.129 million, United Bank for Africa exchanged 23.961 million shares cost N502.244 million.

Transnational Corporation of Nigeria traded 22.831 million shares worth N22.831 million while Jaiz Bank sold a total of 11.550 million shares cost N24.299 million.

Back to top button