Economy

NSE market capitalisation increases by N25bn

Investors in Equities market forfeit N21bn as GlaxoSmithKline leads losers' chart
Written by Maritime First

…As MPC retains Monetary Policy Rate at 13.5%***

The Nigerian Stock Exchange (NSE) positively closed trading on Friday with the market capitalisation improving by N25 billion.

The market capitalisation closed higher at N13.483 trillion compared with N13.458 trillion, an increase of 0.19 per cent.

Also, the NSE All-Share Index rose by 52.54 points or 0.19 to close at 27,698.69 from 27,646.15 achieved on Thursday.

Nestle led the gainers’ table, gaining N10 to close at N1,210.10 per share.

Stanbic IBTC followed with a gain of N2.90 to close at N42.85, while Nigerian Breweries gained 55k to close at N52.55 per share.

Dangote Sugar added 50k to close at N11.05, while Flour Mills advanced by 30k to close at N14 per share.

Conversely, Cadbury topped the losers’ chart, declining by 70k to close at N10.95 per share.

Zenith Bank trailed with a loss of 30k to close at N18.70, while Eterna dipped 25k to close at N2.75 per share.

Also read:  Renewed profit taking: Investors forfeit N17bn as NSE market indices down by 0.13%

Guaranty Trust Bank was down by 25k to close at N29, while Lafarge Africa also depreciated by 25k to close at N15.1 per share.

The volume of shares traded closed lower with an exchange of 177.57 million worth N5.92 billion achieved in 3,484 deals.

This was against a total of 245.44 million shares valued at N1.67 billion traded in 3,450 deals on Thursday.

Nigeria Breweries was the most active stock, exchanging 28.14 million shares worth N1.48 billion.

Guaranty Trust Bank followed with an account of 17.66 million shares worth N512.29 million, while FBN Holdings sold 15.96 million shares valued at N89.51 million.

United Bank for Africa sold 15.22 million shares worth N93.60 million, while Zenith Bank traded 14.55 million shares valued at N275.97 million.

In the meantime, the Monetary Policy Committee (MPC) has retained the Monetary Policy Rate (MPR) at 13.5 per cent.

Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), made the fact known after the MPC meeting in Abuja on Friday.

Emefiele disclosed that nine out of 11 members of the committee attended the meeting.

He said the committee also retained Cash Reserve Ratio (CRR) at 22.5 per cent and the Liquidity Ratio at 30 per cent.

He explained that the development was a decision of the nine members of the committee who were in attendance at the meeting and voted unanimously for retention for the progress and development of the economy.

Emefiele said in considering specific policy options of whether to loosen, tighten or hold, the committee ensured that it focused and considered that the growth of the economy was imperative and the management of price stability was sacrosanct.

He disclosed that in consideration regarding the policy action to adopt, the MPC felt compelled to review as usual whether to tighten, hold or loosen.

According to him, tightening policy is not an option at this time, while loosening will drive growth in consumer credit without corresponding adjustment.

Emefiele said the option to hold required understanding of quantum and timing of liquidity injection into the economy before deciding on possible adjustment.

He said the committee also noted a positive moderation in inflation although slowly from 11.08 in July to 11.02 in August.

Meanwhile, the governor stated that the committee advised the government to adopt ‘big bank approach towards building fiscal buffer by purposefully freeing up redundant assets through efficient and effective privatisation process.

He said the step would raise fiscal revenue for the government and resuscitate redundant assets and also generate employment as well contribute to the growth of the economy.

 

 

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Maritime First

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