*Investors gain N368bn By Peter Egwuatu The stock exchange swung back to positive territory yesterday following the retention of the Monetary Policy Rate, MPR, at 11.5 per cent by the financial institution of Nigeria, CBN, in its second Monetary Policy Committee, MPC meeting of the year.
ADVERTISING Also the return to bullish trading was coming at the backdrop of some positive corporate earnings as investors gained over N368 billion within the three trading days of the week. market capitalization which represents investors’ worth on the Nigerian stock market , NSE, close Wednesday at N20.449 trillion as against N20.081 trillion on Friday, while the NSE All Share Index, ASI, went up by 1.8 per cent to shut at 39,085.78 points from 38,382.39 points on Friday.
The MPR is that the baseline rate of interest within the economy, with the present rate indicating lower rate of interest and availability of additional cash within the market . Godwin Emefiele, CBN governor, on Tuesday, explained that increasing the MPR will increase the value of borrowing and reduce access to credit for businesses which he said might reverse the expansion trend of the economy. Reacting on the stock exchange development analysts at Vetiva Securities Limited said, “With more corporate announcements likely to flood the market, we expect tomorrow’s session (Thursday) to follow an identical pattern to Wednesday, as investors react to the varied financial performances and dividend announcements. We anticipate further mixed activity along those lines.” Analysts at InvestData said: “The outcome of the MPC meeting, has played a really important role in determining the market trend, following which traders and investors should stick with fundamentally sound stocks. “This is without prejudice to the very fact that investors will respond sharply to unimpressive results from companies yet to present their scorecards, especially when dividend declared comes below expectation.”