The Nigerian stock market continues to maintain its bullish trend as anticipation builds around the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting scheduled for today. Investors are speculating on the direction of the Monetary Policy Rate (MPR), which will influence interest rates for loans and financial activities across the economy.
Analysts expect the CBN to hold the current MPR due to slowing inflation rates. The stock market’s positive momentum last week was reflected in the Nigerian Exchange Limited (NGX) All Share Index (ASI), which rose by 0.8% to 98,247.99 points, up from 97,456.62 points the previous week. Additionally, market capitalization increased by N455 billion, closing at N56.466 trillion.
Several key stocks fueled this upward movement, including Geregu Power, which gained 15% week-on-week, followed by Fidelity Bank (4.20%) and MTN Nigeria (3.95%).
Analysts at Cordros Research predict that the MPC will likely maintain the MPR at 26.25%, citing domestic GDP resilience and easing global inflation. However, they warn that rising fuel prices and continued pressure on the naira may challenge the stability of the economy.
Market experts at InvestData Consulting anticipate mixed sentiments as investors reposition portfolios ahead of the third-quarter earnings reports, with a balance of profit-taking and bargain-hunting activities expected. The trend of sector rotation continues, offering investors opportunities to buy into undervalued stocks.
