Stock market sees first major rally since Nigeria’s rate hike

…NGX-ASI rises by 0.50%

Nigeria’s equities market on Thursday recorded its first major gain since the recent hike of monetary policy rate (MPR) by 25 basis points to 27.5 percent.

The market benchmark performance indicator increased by 0.50 percent, while investors booked about N306billion gain at the close of trading. The stock market has risen this month by 0.14 percent.

“The MPC’s ongoing tightening efforts to curb inflation and stabilise the FX market carry varying

implications for the financial markets. Fixed-income yields are expected to remain elevated, with the latest rate hike likely having a more muted impact on treasury yields.

“Despite these policy adjustments, a significant capital shift from the equities market is unlikely, as investor sentiment is expected to remain guided by fundamentals,” Lagos-based Meristem analysts said in their post-MPC commentary.

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Newly listed Aradel and other major advancers like Vitafoam, FTN Cocoa, and Oando helped push the market higher despite many investors cautious approach to equities investment.

Aradel rose from N473.30 to N517, adding N43.70 or 9.23 percent. Vitafoam increased from N21.40 to N23.50, up by N2.10 or 9.81percent. FTN Cocoa moved up from N1.79 to N1.93, adding 14kobo or 7.82 percent. Oando increased from N62 to N65.35, up by N3.35 or 5.40 percent.

Stocks like FBN Holdings, Haldane McCall, Guinea Insurance, Cutix and Access Holdings were highly traded. Equities dealers in 8,404 deals exchanged 632.74 million shares worth N10.81billion.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation increased from preceding day’s lows of 97,296.57 points and N58.969 trillion respectively to 97,783.81 points and N59.275trillion. Year-to-date (YtD), the market has risen by +30.77 percent, while week-to-date (WtD), it is up by 0.05 percent.