MPC: Inflation figure to determine stock market direction — Experts

Stock market operators have predicted that mixed performance will be sustained on the nation’s bourse this week ahead of September Monetary Policy Committee (MPC) meeting and August inflation report.

They said this in an interview in Lagos on Monday, while speaking on stock market expectations in the new week.

The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, said that the MPC slated for Sept. 20 and Sept. 21 and August inflation report would determine stock market trend in the next coming days.

Omordion said that institutional and other investors were looking forward to the August inflation report and the outcome of the MPC meeting just as they continue to reposition off-portfolios for the last quarter.

Omordion added that the stock market would witness mixed trend as investors and traders digest the results of first-tier banks and happenings in the money market due to rise in Treasury Bill rates.

Also speaking, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., anticipated cautious trading in the bourse following the MPC meeting scheduled for next week.

Kurfi urged investors to take positions in only fundamental stocks with growth potential, noting that weak macro story remains a significant threat for corporate earnings.

It was reported that the bears consolidated hold on the Nigerian Exchange (NGX) Ltd.

last week with investors losing N177 billion following profit taking across bellwether stocks.

Superficially, the market capitalisation lost N177 billion to close at N20.279 trillion compared with N20.456 trillion posted in the corresponding week.

Also, the All-Share Index inched lower by 339.23 points or 0.86 per cent to close at 38,921.78 against 39,261.01 achieved in the comparative week.

Consequently, the month-to-date and year-to-date losses increased to 0.8 per cent and 3.3 per cent respectively.

A breakdown of the activity chart shows that 25 equities recorded price appreciation during the review period against 26 in the previous week.

Cornerstone Insurance topped the losers’ chart in percentage terms, dropping by 15.79 per cent or 9k to close at 48k per share.

UPDC trailed with a loss of 10.06 per cent to close at 18k, SCOA lost 9.72 per cent or 14k to close at N1.30 per share.

Conversely, Oando led the gainers’ table during the week in percentage terms, gaining 14 per cent or 57k to close at N4.64 per share.

FTN Cocoa Processors followed with a gain of 11.11 per cent or 5k to close at 50k, while Mutual Benefits Assurance rose by 10.71 per cent or 3k to close at 31k per share.

A total turnover of 1.43 billion shares worth N13.07 billion in 19,315 deals was traded this week by investors against 1.34 billion shares valued at N8.65 billion that exchanged in 19,830 deals last week.

The financial services industry (measured by volume) led the activity chart with 1.14 billion shares valued at N8.20 billion traded in 10,700 deals, thus contributing 79.68 per cent and 62.73 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 76.520 million shares worth N1.38 billion in 3,076 deals.

The third place was conglomerates with a turnover of 58.22 million shares worth N186.29 million in 769 deals.

Trading in the top three equities namely FBN Holdings, Access and Wema Banks (measured by volume) accounted for 626.76 million shares worth N4.46 billion in 2,802 deals.

Contributing 43.95 per cent, and 34.10 per cent to the total equity turnover volume and value.