• Sunday, December 08, 2024
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Stock market sees first major rally since Nigeria’s rate hike

Lafarge drives NGX rally on Huaxin $1bn deal

…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.

Read also: CBN sets new guidelines for Interbank FX trading via EFEMS

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.

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

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