You are here: HomeNews2022 10 03Article 591929

Business News of Monday, 3 October 2022

Source: punchng.com

NGX ASI hits 14.77% despite interest rate hikes

NGX logo NGX logo

The All Share Index, of the Nigerian Exchange Limited has returned to a high, hitting 14.77 per cent year-to-date, data from NGX shows.

According to analysis of daily trading data, Market showed resilience despite three consecutive interest rate hikes by the Central Bank of Nigeria.

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.

In total, the CBN had raised MPR by 400 basis points (bps) from 11.5 per cent predating the 24 May 2022 meeting of the MPC to 15.5 per cent as of 27 September 2022.

Despite inflation rate, the ASI weathered the storm of interest to remain at 14.77 per cent at the end of September.

Other Indices such as the NGX Main-Board Index, NGX AFR Div Yield Index, NGX Growth Index and NGX MERI Growth Index had seen excellent returns YTD at 30.53 per cent, 14.98 per cent, 38.07 per cent, and 20.97 per cent respectively.

On a sectoral level, the NGX Oil/Gas Index was the best performing sectoral index on a YTD basis at 47.63 per cent correlating with a general positive performance in oil firms globally amidst high oil prices.