Nigerian Stocks Traders Make N390bn in 5hrs As Expert Express Concern After CBN Interest Rate Hike
- Nigerian stocks traders raked in a whopping N390 billion in just five hours of trading on the lady day of March
- The strong performance is thanks to the significant gain of banking stocks such as GTCO and UBA
- Muda Yusuf told Legit.ng that the CBN new interest rate will have a negative impact on the Nigerian stocks market
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian stock market recorded a positive performance as the value of listed equities soared by N390 billion, reaching N54.71 trillion at the close of trading on Thursday, February 29, 2024.
This is the first positive close since the outcome of last Tuesday’s bimonthly meeting of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC).
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The positive performance of the market is thanks to to investors who bought shares of Guaranty Trust Holding Company Plc (GTCO Plc) and United Bank for Africa Plc (UBA).
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Data from NGX shows that GTCO share price rallied most on the Bourse from N36 to N39.60, up by N3.60 or 10% during the 5 hours of trading.(9:30am to 2:30pm).
It was followed by that of UBA which increased from N20.50 to N22.55, up by N2.05 or 10%.
Here is a snapshot of the NGX activities on Thursday
- NGX All-Share Index: 99,980.3 points
- Previous ASI: 99,266.02 points
- % Day Change: +0.72%
- Market Cap: N54.71 trillion
- Volume Traded: 542.95 million units
- Value: N8.697 billion
- Deals: 9,650
Top Gainers
- GTCO: +10% to close at N39.60
- NEM Insurance Plc- +10% to close at N6.60
- Juli PLC.- +10% to close at N3.41
- United Bank for Africa Plc +10% to close at N22.55
- Champion Breweries Plc: +9.97% to close at N3.42
Top Losers
- The initiates plc: -10% to close at N1.80
- Sunu Assurances Nigeria PLC -10% to close at N1.71
- Eterna plc -9.81% to close at N14.25
- CWG: -9.76% to close at N5.55
- Morison Industries plc -9.58% to close at N1.51
Expert speaks
Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, has expressed concern about the recent decision of the CBN to raise the interest rate.
Legit.ng earlier reported that the Monetary Policy Committee (MPC) raised the Monetary Policy Rate (MPR) or interest rate by 400 basis points (bps) to 22.75%, the highest since 2007.
Mudu explained to Legit.ng that the stock market will be impacted with the CBN's MPR decision.
His words:
"The new dramatic increase in MPR to 22.5% hike means that the cost of credit to the few private sector that have exposure to bank credits will increase which will impact their operating costs, prices of their products and profit margins, amidst vey challenging operating conditions.
"The equities market may also be adversely impacted by the hike."
Femi Otedola sells N399m worth of Geregu shares
Earlier, Legit.ng reported that Femi Otedola, the chairman of Geregu Power Plc, has cashed out over N399 million from his investment in the company.
He made the money after selling 1 million units of his Geregu shares held through Amperion Power Distribution Company Limited.
The transaction details were disclosed in a corporate document submitted to the Nigerian Exchange Limited (NGX).
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Source: Legit.ng
