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Stock market defies rate hike, gains N145bn

Ghana grants banks extension for reports filing

Nigeria’s equities market continued its upward momentum on Tuesday despite that the Monetary Policy Committee (MPC) after a two-day meeting raised its benchmark interest rate known as Monetary Policy Rate (MPR) by 100 basis points to 16.5 percent.

The stock market rose by 0.51 percent or N145 billion at the close of trading, pushing its year-to-date (YtD) positive return higher to 5.18 percent. The positive close on Tuesday was driven by buy activities in stocks like UACN, Fidson Healthcare, International Breweries, and UPDC REIT.

UACN rallied most from N8.90 to N9.50, adding 60kobo or 6.74 percent, followed by Fidson Healthcare which rose from N8.15 to N8.72, up by 57kobo or 6.99percent. Also, International Breweries rose from N4.25 to N4.65, adding 40kobo or 9.41percent, while UPDC REIT advanced from N2.50 to N2.75, adding 25kobo or 10 percent.

Read also: Local investors still king in Nigeria’s equities market

At the close of trading on the Nigerian Exchange Limited (NGX), the market’s performance indicators All Share Index (ASI) and equities Market Capitalisation – rose from 44,662.96 points and N24.326trillion respectively to 44,929.33 points and N24.471trillion.

Zenith Bank, Fidelity Bank, MTNN, AIICO and Transcorp were top-5 traded stocks on the Exchange. In 3,383 deals, investors exchanged 126,564,239 shares valued at N3.851 billion.

The MPC decision to further hike MPR was in consideration of the persistent rise in the inflation rate and fragile economic growth. Nigeria’s headline inflation accelerated to the highest level in 17 years to 21.09 percent in October 2022, from 20.77 percent in the previous month.