Seplat, GTCO, And MTN Stocks Hit Hard By CBN’s Interest Rate Raise

Seplat, GTCO, And MTN Stocks Hit Hard By CBN’s Interest Rate Raise

The Nigerian stock market closed lower last week, reacting negatively to the Central Bank of Nigeria’s (CBN) recent interest rate hike. The Monetary Policy Committee (MPC) raised the benchmark interest rate, the Monetary Policy Rate (MPR), by 25 basis points to 27.5%, marking the sixth consecutive increase this year...READ MORE…

The Nigerian Exchange Limited (NGX) saw a decline of 0.3% in its All-Share Index (ASI), which closed at 97,507.87 points, down from 97,829.02 points the previous week. Sell-offs in major stocks such as Seplat, which dropped by 6%, GTCO by 3%, and MTN Nigeria by 1.2%, contributed to the downturn, despite gains in WAPCO, Oando, and FBNH.

Market activity remained strong, with trading volume and value rising by 63.6% and 52.8%, respectively. Sector performance was mixed, as the Oil & Gas, Consumer Goods, and Banking indices saw declines, while the Insurance and Industrial Goods indices posted gains.

Month-on-Month, the market fell slightly by 0.1%, with investors losing N64 billion as the market capitalization dropped to N59.207 trillion from N59.271 trillion at the end of October. Year-to-Date, the market still showed a 30.4% gain.

Analysts at Cordros Research anticipate cautious trading in the coming week, with no major positive catalysts to boost sentiment, while analysts at InvestData Consulting expect mixed sentiments as investors adjust their portfolios in response to the rate hike.

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