Mixed sentiments trailed trading on the nation’s bourse on Tuesday with All-Share Index dropping marginally by 0.01 per cent as the Monetary Policy Committee (MPC) retained all policy parameters.
Specifically, the index shed 4.99 points or 0.01 per cent to close at 43,255.14 from 43,260.13 recorded on Monday.
Thus, the month-to-date and year-to-date returns unchanged at 2.9 per cent and 7.4 per cent, respectively.
However, the market capitalisation rose by one billion Naira to close at N22.576 trillion against N22.575 trillion achieved on Monday.
The Monetary Policy Committee (MPC) at the end of the meeting unanimously elected to retain all policy parameters; Monetary Policy Rate (MPR) at 11.5 per cent; Asymmetric corridor around the MPR at +100/-700bps; Cash Reserve Ratio (CRR) at 27.5 per cent; and Liquidity Ratio (LR) at 30.0 per cent.
Commenting on the implications of the meeting on the stock market, analysts at Cordros Research said the outcome of the MPC meeting had already been priced.
“We expect a neutral reaction from market participants.
“Overall, we see scope for the market to sustain the positive performance due to investors positioning in dividend-paying stocks ahead of 2021FY dividend declarations in Q1-22,” they said.
The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; Dangote Sugar Refinery, NEM Insurance, International Breweries, UACN Property Development Company (UPDC) and AXA Mansard Insurance.
However, market breadth was positive with 19 gainers in relative to 15 losers.
Honeywell Flour Mills dominated the gainer’s chart in percentage terms by 9.95 per cent to close at N4.09 per share.
University Press followed with 8.70 per cent to close at N2.50, while Consolidated Hallmark Insurance rose by 7.41 per cent to close at 58k per share.
GlaxoSmithKline improved by 5.79 per cent to close at N6.40, while FTN Cocoa processors appreciated by five per cent to close at 42k per share.
On the other hand, UPDC led the losers’ chart in percentage terms by 9.35 per cent to close at N1.26 per share.
NEM Insurance followed with 9.27 per cent to close at N1.86, while AXA Mansard Insurance lost 5.11 per cent to close at N2.23 per share.
Chams declined 4.55 per cent to close at 21k, while Royal Exchange shed 4.08 per cent to close at 47k per share.
The total volume of trades decreased by 90.9 per cent to 217.97 million units valued at N2.91 billion exchanged in 4,158 deals.
This was in contrast with 2.41 billion shares worth N16.47 billion transacted in 4,811 deals on Monday.
Transactions in the shares of Guaranty Trust Holding Company topped the activity chart with 36.19 million shares valued at N919.63 million.
FBN Holdings followed with 31.54 million shares worth N387.28 million, while Zenith Bank traded 13.43 million shares valued at N327.25 million.
Access Bank traded 13.09 million shares worth N121.51 million, while Honeywell Flour Mills transacted 9.84 million shares valued at N40.25 million.