Following the Central Bank’s increase in the Monetary Policy Rate to 18%, the market capitalization on the Nigerian Stock Exchange fell by N13 billion at the end of last week’s trading.
The All-Share Index ended the week at 54,892.53, down 0.04% from the 54,915.39 it started at, according to statistics collated.
According to a study of last week’s trading, all other indices finished lower, with the exception of NGX Consumer Goods and NXG Growth, which rose by 1.11% and 2.90%, respectively. The NGX ASeM, NGX Oil and Gas, and NGX Sovereign Bond indexes all ended the week at a level.
The NGX ASI increased a little on Wednesday, the day after the new MPR rate was published, but it declined until the conclusion of trade on Friday.
The Central Bank of Nigeria’s Monetary Policy Committee had earlier increased the MPR from 17.5% to 18% last month.
The Centre for the Promotion of Private Enterprise’s (CPPE) director, Muda Yusuf, previously said DAILY POST that the increase in interest rates will have an impact on investors in Nigeria.
Stock analysts, however, are certain that the market will recover now that the elections are finished.
Speaking with Daily Post, Mr. Muda Yusuf, the head of the Centre for Promotion of Private Enterprise (CPPE), stated that the increase in interest rates will have an impact on investors in Nigeria.
However, stock analyst have are optimistic that the market will rebound as the elections are over.