Nigerian Stocks Gain 0.11% Despite 1.50% Interest Rate Hike

May 22, 2024
Nigerian Stocks1

By Dipo Olowookere

Nigerian stocks shrugged off an increase in the interest rate by 150 basis points to 26.25 per cent by the Central Bank of Nigeria (CBN) on Tuesday at its Monetary Policy Committee (MPC) meeting.

The Nigerian Exchange (NGX) Limited reacted positively to this and appreciated by 0.11 per cent during the session, buoyed by the 0.79 per cent growth posted by the consumer goods sector and the 0.16 per cent rise recorded by the banking index.

The duo suppressed the 0.38 per cent loss reported by the insurance counter, as the energy and industrial goods sectors closed flat at the close of business.

When trading activities ended for the session, the All-Share Index (ASI) was up by 107.45 points to 98,285.33 points from 98,177.88 points, and the market capitalisation gained N61 billion to settle at N55.598 trillion compared with Monday’s closing value of N55.537 trillion.

Business Post reports that Customs Street was relatively quiet on Tuesday as investors kept an eye on the MPC outcome, resulting in the cautious trading.

A total of 222.9 million stocks worth N5.2 billion exchanged hands in 7,228 deals during the session compared with the 405.7 million stocks worth N6.7 billion transacted in 8,439 deals in the preceding day, representing a decline in the trading volume, value, and the number of deals by 45.06 per cent, 22.39 per cent, and 14.35 per cent, respectively.

GTCO sat on top of the activity table yesterday after transacting 40.6 million shares valued at N1.6 billion, Access Holdings traded 27.5 million equities worth N469.1 million, UBA sold 24.0 million stocks for N502.4 million, Transcorp exchanged 22.8 million shares for N260.7 million, and Jaiz Bank traded 11.6 million stocks valued at N24.3 million.

Berger Paints topped the gainers’ chart on Tuesday after chalking up 9.96 per cent to close at N14.90, Nestle Nigeria improved by 9.76 per cent to N900.00, Sovereign Trust Insurance rose by 8.11 per cent to 40 Kobo, Royal Exchange jumped by 7.14 per cent to 60 Kobo, and Tantalizers grew by 6.38 per cent to 50 Kobo.

On the flip side, International Energy Insurance lost 9.70 per cent to trade at N1.49, Deap Capital plunged by 8.33 per cent to 44 Kobo, UPDC shrank by 7.69 per cent to N1.20, Coronation Insurance fell by 7.25 per cent to 64 Kobo, and Sterling Holdings moderated by 6.25 per cent to N4.20.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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