Nigerian equities crawled back to a slight recovery last week as investors await the decisions of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).
The MPC starts its meeting today, Monday, May 18, and it is expected to announce its decisions on Tuesday, May 18.
The Nigerian stock market showed an encouraging recovery last week with average week-on-week gain of 0.15 per cent. The All Share Index (ASI), the composite value-based index that tracks prices of all quoted equities, trended upward by 0.15 per cent from its week’s opening index of 34,388.21 points to close at 34,439.40 points.
Aggregate market value of all quoted equities rose by 0.16 per cent from N11.678 trillion to close the week at N11.697 trillion.
According to market pundits, the outcome of the MPC meeting will influence portfolio direction of most investors. The MPC is expected to situate its decisions in the context of the recent pressure on exchange rate, declining external reserves, rising price level and slowing domestic economic growth.
Market analysts at SCM Capital (formerly Sterling Capital Markets Limited), GTI Securities and Afrinvest Securities among others said the MPC decisions would impact on the overall market performance going forward. Most analysts however said they expected the MPC to retain the current rates.
Total turnover at the Nigerian Stock Exchange (NSE) last week stood at 1.63 billion shares worth N14.43 billion in 20,124 deals compared with a total of 1.58 billion shares valued at N20.15 billion traded in 23,279 deals in previous week.
Transactions on three banking stocks accounted for nearly half of total transactions at the stock market last week as banking stocks continued to show better returns than other groups.