•Investors lose N266bn as funds move to fixed income market

By Peter Egwuatu 

Bearish sentiments resurfaced in the Nigerian stock market, as investors reacted to the hike in the Central Bank of Nigeria, CBN’s Monetary Policy Rate, MPR, which is the benchmark interest rate for lending by banks and other financial institutions.

The CBN’s Monetary Policy Committee MPC, last week raised the MPR by 50 basis points to 27.25% from 26.75% with a view to taming inflation which is currently at 32.15%.

Analysts observed that investors reacted appropriately as they eyed fixed income securities whose yield is expected to become higher following the hike in MPR.

They further added that all eyes are also on the third quarter, 2024, Q3’24 earnings reporting season expected to usher in seasonality and sentiments necessary for discerning investors to take advantage of the last quarter volatility and seasonality to create wealth.

Meanwhile, analysis of trading last week showed that the Nigerian Exchange, NGX All Share Index, ASI, a major stock indicator shed  47 bases points, bps or 0.5%  to  close at 98,523.56 points from 98,247.99 points the previous week.

In tandem, another major market guage, market capitalization, also closed lower at N56.61 trillion from N56.45 trillion the previous week with investors losing N266.55 billion. Consequently, the Month-to-Date and Year-to-Date returns moderated to 2.0% and 31.8%, respectively.

Commenting on the market outlook, analysts at InvestData Consulting Limited, said: “ We expect mixed sentiment to continue on profit taking and portfolio rebalancing ahead of quarter-end window dressing and Q3 earnings session. Also, sector rotation continues in the market, with investors taking advantage of pullbacks to buy into value.

This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically”.