Stock Market Sees Marginal Growth Amid Interest Rate Hike Speculations ??

The Nigerian stock market experienced a modest gain of 0.1% last week, adding ₦77 billion to the total value of listed equities as investors braced for a potential interest rate hike by the Central Bank of Nigeria (CBN).

Weekly Market Highlights:

• Market Capitalization: Increased to ₦59.292 trillion from ₦59.215 trillion.

• NGX All-Share Index (ASI): Rose slightly to 97,829.02 points from 97,722.28 points.

• Top Gainers:

• MTN Nigeria: Up 1.18% WoW.

• Zenith Bank: Increased by 3.32% WoW.

• WAPCO: Gained a significant 28.57% WoW.

• Key Decliners:

• BUA Cement: Down 0.52% WoW.

• Aradel: Dropped by 1.50% WoW.

• GTCO: Declined by 2.50% WoW.

The market recorded growth in three out of five trading sessions, reflecting mixed investor sentiment amid economic uncertainties.

Anticipated Interest Rate Hike ?

Analysts widely anticipate a benchmark Monetary Policy Rate (MPR) increase at the Monetary Policy Committee (MPC) meeting this week.

• Cordros Research predicts a 50 basis points (bps) hike to 27.75%, citing:

1. Rising inflation due to fuel price surges and food supply disruptions from flooding.

2. The need to stabilize prices and maintain positive real returns.

3. Global economies’ shift toward accommodative stances.

• Afrinvest Securities Limited forecasts a more conservative 25bps increase at the final policy meeting of the year.

Economic Context ?

The market’s modest rally and investor behavior reflect cautious optimism as the CBN aims to address inflationary pressures and ensure macroeconomic stability.

Investors are advised to stay informed as policy adjustments could influence future market trends.