As speculation mounts regarding the Central Bank of Nigeria’s (CBN) upcoming decision on monetary policy, the stock market has maintained positive momentum on the Nigerian Exchange Limited (NGX). The Monetary Policy Committee (MPC) is set to decide on the Monetary Policy Rate (MPR), the benchmark interest rate for lending.
Analysts anticipate that the CBN may keep the existing MPR steady, given recent trends of slowing inflation. Last week, the NGX All Share Index (ASI) increased by 0.8%, closing at 98,247.99 points, up from 97,456.62 points. Market capitalization also rose by N455 billion, reaching N56.466 trillion from N56.001 trillion.
Key stocks contributed to this positive performance, with Geregu Power gaining 15%, Fidelity Bank up 4.2%, and MTNN rising 3.95%.
Analysts at Cordros Research expect the MPC to adopt a cautious approach, likely maintaining the MPR at 26.25% to support economic stability. They noted that while Nigeria’s GDP growth remains robust and inflation has decreased for two consecutive months, rising fuel prices and ongoing naira stabilization efforts present challenges.
Looking ahead, analysts at InvestData Consulting Limited predict mixed sentiment in the market as investors adjust their portfolios in anticipation of Q3 earnings and potential dividend inflows. Profit-taking and bargain hunting are expected to continue as sector rotation unfolds.