NGX: Capital market maintained resilience despite multiple CBN rate hikes | TheCable

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The Nigerian Exchange Limited (NGX) says analysis of daily trading data from the exchange revealed that the all-share index (ASI) has returned 14.77 percent year-to-date (YtD). NGX said this in

October 2, 2022 1:27 PM

The Nigerian Exchange Limited says analysis of daily trading data from the exchange revealed that the all-share index has returned 14.77 percent year-to-date .According to the statement, the development implies that the capital market has shown “resilience despite three consecutive interest rate hikes by the Central Bank of Nigeria ”.

NGX said to curb rising inflation amid both local and global headwinds such as spiralling inflation against the backdrop of soaring food prices; higher energy costs due to COVID-19 fallout; Russian-Ukraine-induced supply chain disruptions; and the continued insecurity in the country; “the CBN resorted to raise its overnight monetary policy rate after monetary policy committee meetings were concluded”.

“The Nigerian Exchange Limited all-share index has returned 14.77 percent year-to-date, analysis of daily trading data from the NGX revealed, showing resilience despite three consecutive interest rate hikes by the Central Bank of Nigeria ,” the statement reads. “In total, the CBN has raised MPR by 400 basis points from 11.5 percent predating the 24 May 2022 meeting of the MPC to 15.5 percent as of 27 September 2022. On the back of strong earnings reports from listed companies in the first half of the year and significant confidence elicited by domestic investors, the ASI has weathered the storm of interest rate hikes to remain in 14.77 percent at the end of September.

 

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