Stock market investors lose N47bn after CBN’s interest rate hike

The performance index of the stock market closed 0.08 per cent weaker on Tuesday, July 23, 2024, as investors reacted negatively to the Central Bank of Nigeria’s (CBN) hike in the Monetary Policy Rate (MPR).

The CBN’s Monetary Policy Committee (MPC) had announced another increase in the country’s MPR by 50 basis points to 26.75 per cent, from 26.25 per cent.

CBN Governor Olayemi Cardoso made this known after the MPC’s 296th meeting in Abuja on Tuesday.

However, the Nigerian Exchange Limited (NGX) market capitalisation, which opened at N56.945 trillion, shed N47 billion or 0.08 per cent to close at N56.898 trillion.

The All-Share Index also dropped 0.08 per cent or 83 points to settle at 100,486.12, against 100,568.60 recorded on Monday.

As a result, the Year-To-Date (YTD) return declined to 34.39 per cent.

Sell-offs in Tier-one banking stocks, including Zenith Bank, Access Corporation, FBN Holdings, United Bank for Africa (UBA), and United Capital, among other declined equities, dragged the market down.

CBN raises interest rate to 26.75%

The market breadth also closed negative with 27 losers and 14 gainers on the floor of the Exchange.

On the losers’ table, UPL led by 9.92 per cent to close at N2.27 and John Holt trailed by 9.87 per cent to close at N2.83 per share.

Omatek lost 9.46 per cent to close at 67k per share, Deap Capital Management and Trust declined by 8.93 per cent to close at 51k, and Secure Electronic Technology Plc shed 7.02 per cent to close at 53k per share.

Conversely, Ikeja Hotel led the gainers table by 6.60 per cent to close at N7.10, while Linkage Assurance followed by 6.90 per cent to close at 93k per share.

Caverton advanced by five per cent to close at N1.47, Sovereign Trust Insurance gained 4.17 per cent to close at 50k and Consolidated Hallmark Plc added 2.96 per cent to close at N1.39 per share.

Analysis of the market activities indicated that trade turnover settled lower relative to the previous session, with the value of transactions down by 2.46 per cent.

A total of 280.92 million shares valued at N3.63 billion were exchanged in 8,403 deals, compared to 335.70 million shares valued at N3.72 billion exchanged in 8,760 deals posted previously.

Meanwhile, Veritas Kapital led the activity table in volume with 22.51 million shares worth N23.03 million, followed by UCAP with 20.85 million shares worth N817.10 million to lead the table in value.

Jaiz Bank traded 20. 78 million shares valued at N45.11 million, Access Corporation transacted 20.40 million shares worth N394.32 million, and Prestige Assurance sold 16.81 million shares worth N8.6 million.

The Star