NGX Rebounds as Interest Rate Spikes

The equities segment of the Nigerian Exchange, NGX, rebounds moderately on Tuesday as investors weigh the impact of an interest rate hike. on the economy and corporate performance.

At the conclusion of a tow day meeting, the Monetary Policy Committee raised the benchmark interest rate by 0.5% to 18% in an effort to fight the rising headline inflation rate.

Hence, the equities market surges higher after it opened the week negative in addition to about N479 billion loss sustained last week.

Data from the local bourse shows that stock market performance indicators inched upward by +0.03%, with an increase in year-to-date return to +7.13%.

The Nigerian Exchange All-share index popped up by 16.20 basis points today, representing a slight increase of +0.03% to close at 54,904.68 points. Consequently, equities market capitalization jumped higher by ₦8.82 billion to close at ₦29,909.95 trillion from ₦29,901.13 trillion yesterday.

However, market activities were down, Stockbrokers at Atlass Portfolios Limited told investors in an email. Trading data shows that total volume and total value traded for the day declined by -89.10% and -44.84% respectively.

According to stockbrokers, approximately 127.74 million units valued at ₦1,586.69 million were transacted in 2,987 deals.

UBA was the most traded stock in terms of volume, accounting for 15.35% of the total volume of trades, followed by TRANSCORP (11.31%), FIDELITYBK (9.97%), ZENITHBANK (9.37%), and GTCO (8.20%) to complete the top 5 on the volume chart.

ZENITHBANK was the most traded stock in value terms, with 18.83% of the total value of trades on the exchange.

LINKASSURE topped the advancers’ chart with a price appreciation of 9.76 per cent, trailed by WAPIC (7.89%), CHAMPION (4.26%), STERLNBANK (2.67%), JAIZBANK (2.30%), and seven (07) others.

Twelve stocks depreciated, according to trading data. IKEJAHOTEL was the top loser on the chart with a price depreciation of -9.65%, as CADBURY (-5.83%), UPL (- 4.76%), INTBREW (-4.30%), and REGALINS (-3.45%) also record price decline.

The market breadth closed par, recording 12 gainers and 12 losers as the sector performance closed positive.

Three of the five major sectors were up; led by the Insurance sector (+1.30%), followed by the Banking sector (+0.36%), and the Industrial sector (+0.11%), while the Consumer goods sector was down by -0.12%. The Oil & Gas sector closed unchanged. # NGX Rebounds as Interest Rate Spikes