Investors price appreciation in large and medium capitalised stocks spike N259bn gains as MPC retains interest rate at 11.5%

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Lagos, Jan. 26, 2021 The Nigerian Stock Exchange on Tuesday extended growth by N259 billion following interest in Airtel Africa, just as the Monetary Policy Committee (MPC) retained the Monetary Policy Rate (MPR) at 11.5 per cent.

Specifically, the market capitalisation which opened at N21.494 trillion rose by N259 billion to close at N21.753 trillion.

The MPC, at the 277th edition of its meeting which ended on Tuesday, had unanimously voted to retain the MPR and other key parameters at their prevailing rates.

The MPR is the interest rate at which the Central Bank of Nigeria lends to commercial banks.

Apart from retaining MPR at 11.5 per cent, the MPC retained the asymmetric corridor around the MPR at +100/-700bps, Cash Reserves Ratio at 27.5 per cent, while liquidity ratio was also retained at 30.0 per cent.

The market gain at the nation’s bourse was driven by price appreciation in large and medium capitalised stocks, amongst which are Airtel Africa, Flour Mills, Lafarge Africa, MTN Nigeria Communications and Fidson Healthcare.

Market breadth was positive with 32 gainers, relative to 19 losers.

R.T.Briscoe led the gainers’ chart in percentage terms with 10 per cent to close at 22k per share.

Champion Breweries followed with 9.81 per cent to close at N2.35, while Universal Insurance rose by 9.52 per cent to close at 23k per share.

African Alliance Insurance garnered 9.09 per cent to close at 24k, while Fidson Healthcare appreciated by 8.60 per cent to close at N5.05 per share.

Conversely, John Holt dominated the losers’ chart in percentage terms, losing 10 per cent to close at 45k per share.

Japaul Gold and Ventures trailed with 9.30 per cent to close at 78k, while Seplat lost 9.26 per cent to close at N490 per share.

Academy Press dipped 9.09 per cent to close at 40k, while Niger Insurance shed 7.41 per cent to close at 25k per share.

Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 45.931 million shares valued at N50.597 million.

AXA Mansard Insurance followed with 34.73 million shares worth N48.64 million, while Japaul Gold and Ventures traded 29.44 million shares valued at N23.04 million.

Soverign Trust Insurance traded 26.44 million shares valued at N7.30 million, while Lasaco Assurance transacted 25.78 million shares worth N10.70 million.

In all, the total volume of trades increased by 40.43 per cent to 467.89 million units valued at N5.57 billion exchanged in 5,990 deals.

This was in contrast with 333.09 million shares worth N2.64 billion achieved in 5,640 deals on Monday.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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