The Stock Market Declines By 0.20 Percent Due to CBN’s 0.5% Rate Hike

CBN

Following CBN 0.5% Rate Hike, The Stock Market Declines By 0.20 Percent

About 24 hours after the Central Bank of Nigeria (CBN) announced a 0.5% increase in the benchmark interest rate to 18.5%, the local stock exchange declined by 0.20 percent.

almost 24 hours since CBN announced a 0.5% increase in the benchmark now the local stock exchange declined by 0.20 percent As investors chewed over the rise in the Monetary Policy Rate (MPR) and the drop in the gross domestic product (GDP) to 2.31 percent in the first quarter of 2023, it was noted that the bears broke the winning streak of the Nigerian Exchange (NGX) Limited on Thursday.

As a result of the pullback, the All-Share Index (ASI) dropped 106 points, to 52,821.60 from 52,927.60, and the market capitalization decreased by N57 billion, to N28.762 trillion from N28.819 trillion.

According to Business Post, the energy index increased by 0.23 percent throughout the session, but this was not enough to keep the bourse floating above the danger zone.

This happened as a result of the other sectors’ losses sinking the exchange at the end of trading, with the consumer goods sector losing 0.14 %.

The insurance industry shrank by 0.8%, the banking sector fell by 0.11 percent, and the industrial products index finished down by 0.07 percent.

There were 23 price losers and 22 price gainers yesterday, showing a negative market breadth, which was indicative of rather subdued investor confidence.

Conoil was the company that lost the most money, with its value falling by 9.92% to N43.60. Unilever Nigeria, Eterna, PZ Cussons, and Japaul also saw losses, with Unilever Nigeria’s value falling by 8.28% to N14.40, 6.21% to N6.80, 6.11% to N16.90, and 5.71% to 33 Kobo respectively.

The company with the largest price increase was FTN Cocoa, which increased by 8.77% to trade at 62 Kobo. Tantalizers increased by 8.33% to 26 Kobo, Coronation Insurance increased by 7.14% to 45 Kobo, Total Energies increased by 6.87% to N249.00, and RT Briscoe increased by 5.88% to 36 Kobo.

In contrast to the 455.2 million shares worth N7.8 billion traded in 6,635 deals on Wednesday, investors transacted 377.1 million shares worth N9.2 billion in 5,879 deals on Thursday, according to Business Post. This represents a 17.95% increase in the trading value, a 17.16% decline in trading volume, and an 11.39% decrease in the number of deals.

UBA traded 86.2 million units worth N745.9 million, Access Holdings traded 67.4 million units worth N737.2 million, Zenith Bank traded 39.4 million units worth N1.1 billion, GTCO traded 31.0 million units worth N836.0 million, and Geregu Power sold 13.1 million units for N3.9 billion.. UBA ended the session as the busiest stock

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