• Tuesday, October 08, 2024
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Stocks gain N120bn in Nigeria’s rate hike week

Stocks gain N120bn in Nigeria’s rate hike week

Nigeria’s equities market rose by N120billion or 0.21 percent in the trading week ended Friday, September 27 as buy-side decisions on the local Bourse outweighed the sell-side activities.

Oil and gas, banking, and insurance stocks pushed the market higher in the review trading week, while consumer goods and industrial stocks were mostly on the sell-side during the week’s trading at the Nigerian Exchange Limited (NGX).

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) surprised market participants in the review week by increasing its benchmark interest rate, known as the Monetary Policy Rate (MPR) by 50 basis points to 27.25 percent from 26.75 percent, the fifth straight hike this year.

Read also: Nigeria’s equities transactions hit N3.47trn in eight months

MPC also raised the Cash Reserve Ratio of commercial banks by 500 basis points to 50 percent from 45 percent, and that of merchant banks by 200 basis points to 16 percent, while keeping other parameters unchanged.

Despite intensified risk-off sentiments amid elevated interest rates in the fixed income market, the stock market still closed most of the week’s sessions in green zone.

The market recorded three days of positives closes in the review week as against two days of negatives closes.

The NGX All-Share Index (ASI) and equities market capitalisation increased from preceding week’s lows of 98,247.99 points and N55.457 trillion respectively to 98,458.68 points and N56.577 trillion.

This month, the market has increased by 1.95 percent, while the year-to-date (YtD) return stood higher at +31.68 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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