Economy
Stock Market Rallies by 0.58% Amid Slow GDP Growth, CBN Rate Hike
By Dipo Olowookere
It was another day in the bulls’ territory for the Nigerian Exchange (NGX) Limited as it finished 0.58 per cent on Wednesday despite the National Bureau of Statistics (NBS) revealing that the gross domestic product (GDP) slowed by 2.31 per cent in the first quarter of 2023.
Also today, the Central Bank of Nigeria (CBN) announced that the monetary policy rate (MPR) had been raised by 50 basis points (0.50 per cent) to 18.5 per cent.
The Governor of the CBN, Mr Godwin Emefiele, said the rate hike was approved at the monetary policy committee (MPC) held in Abuja.
These developments did not put the stock market under pressure as bargain-hunting dominated and lifted the bourse when trading activities closed for the day.
As a result, the All-Share Index (ASI) rose by 306.41 points to 52,927.60 points from 52,621.19 points, and the market capitalisation grew by N166 billion to N28.819 trillion from N28.653 trillion.
Business Post reports that more trades were recorded during the session when compared with the preceding session, leading to an increase in the trading volume, value and the number of deals by 29.69 per cent, 50.00 per cent, and 11.59 per cent apiece.
This was because traders exchanged 455.2 million shares worth N7.8 billion in 6,635 deals in the midweek session compared with the 351.0 million shares worth N5.2 billion traded in 5,946 deals on Tuesday.
The mopping up of banking equities continued during the session, especially in some shares with good fundamentals as investors prepare for the end of the half-year.
Access Holdings traded 69.2 million stocks valued at N755.7 million, UBA sold 66.5 million shares worth N577.8 million, Zenith Bank exchanged 37.6 million equities valued at N1.0 billion, Fidelity Bank transacted 32.5 million shares for N182.8 million, and GTCO traded 31.0 million equities worth N848.3 million.
The market breadth was positive on Wednesday, as the bourse finished with 36 price gainers and 17 price losers, implying a strong investor sentiment buoyed by sustained buying pressure.
Nestle Nigeria gained 9.98 per cent to trade at N1,148.00, Tripple Gee jumped by 9.88 per cent to N3.56, UAC Nigeria increased by 9.76 per cent to N9.00, University Press appreciated by 9.76 per cent to N2.25, and RT Briscoe rose by 9.68 per cent to 34 Kobo.
A look at the other side of the coin showed that Chellarams declined by 9.82 per cent to N1.47, McNichols shed 9.59 per cent to 66 Kobo, Coronation Insurance depleted by 8.70 per cent to 42 Kobo, Academy Press fell by 7.14 per cent to N1.56, and Cutix crashed by 3.23 per cent to N2.40.
As for the sectorial performance, the only laggard was the insurance sector, which decreased by 0.10 per cent, as the energy, consumer goods, banking, and industrial goods sectors grew by 2.54 per cent, 2.07 per cent, 1.06 per cent, and 0.23 per cent, respectively.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
