Stock market sustains positive sentiment as investors await MPC meeting
yarkarkara
By Peter Egwuatu
The outcome of the Central Bank of Nigeria,CBN’s Monetary Policy Committee, MPC meeting this week will determine further direction of the stock market, even as investors sustained the return of bullish momentum last week.
The Nigerian Exchange Limited, NGX closed last week on a positive note, as buying interest in BUA Foods, which went up by 6.7%, followed by Guinness Nigeria surging by 28.6%, Dangote Cement 1.0% and Nigerian Breweries, NB 8.1 % lifted the All-Share Index, ASI by 0.9% Week on Week, W/W to close at 141,854.48 points.
Consequently, the Month-to-Date, MtD and Year to Date, YtD returns improved to +1.1% and +37.8%, respectively.
Analysts noted that the MPC meeting would hold on September 22 and 23, 2025 and the decisions of the members with regards to Monetary Policy Rate, MPR would determine the investment direction by investors.
Meanwhile, analysis of trading activity showed that transactions moderated as both volume and value declined by 38.1% W/W and 38.3% W/W respectively.
Sectoral performance was mixed with gains in the Consumer Goods Index rising by 5.5%, Oil & Gas Index 2.8%, and Industrial Goods Index 0.1%, while the Insurance Index declined by -4.7% and Banking Index by -2.6%.
Further analysis of the market last week showed that a total tumover of 2.735 billion shares worth N85.197 billion in 127,284 deals was traded by investors on the floor of the Exchange, in contrast to a total of 3.188 billion shares valued at N99 685 billion that exchanged hands the penultimate week in 132,711 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.909 billion shares valued at N37.834 billion traded in 56,026 deals; thus contributing 69.79% and 44.41% to the total equity turnover volume and value respectively. The ICT Industry followed with 184.870 million shares worth N6.189 billion in 12,893 deals. Third place was the Services Industry, with a turnover of 176.506 million shares worth N813.252 million in 6,011 deals. Reacting to market outlook, analysts at Cordros Research stated : In the coming week, we expect the outcome of the MPC meeting to shape market activities, determining the magnitude of investors’ appetite for risk assets.
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