Nigerian equity market gains amid rising interest rate, naira appreciation

By Samuel Bankole

The Nigerian equity market showcased resilience and strength as it closed on a positive note on Wednesday.

The All Share Index soared by 0.32 percent, reaching a commendable 104,283.64.

This uptick in performance was paralleled by a rise in the market cap of equities listed on the NGX, which surged to N58.963 trillion, marking a notable increase from the previous N58.776 trillion.

Trading activity was robust, with a total volume of 499.707 million units exchanging hands, valued at N12.41 billion, facilitated through 10,260 deals.

The market breadth reflected positivity, with 29 gainers outnumbering 20 losers, indicating a generally bullish sentiment among investors.

Key Movements and Sector Highlights

The NGX 30 Index mirrored the overall positive trend, climbing by 0.33 percent to settle at 3,869.48 points, up from 3,856.58 points at the last close.

Noteworthy performances were observed among key players, with Zenith and Guaranty emerging as top gainers, while International Breweries and FBNH experienced some downturn.

Interest Rates and Forex Market

READ ALSO: Access Corp seeks to raise $1.5 bln, N365 bln in capital via bonds, rights issues, others

Turning to the financial landscape, the overnight (O/N) rate saw a modest increase of 0.54 percent, reaching 27.50 percent, compared to the previous close of 26.96 percent.

Similarly, the open repo (OPR) rate saw a rise, closing at 26.93 percent, up from 26.29 percent on the previous day.

In the foreign exchange market, the naira displayed strength as it appreciated against the dollar. The dollar was quoted at N1,300.43, marking a favorable shift from the previous close of N1,382.95.

The Nigerian equity market’s positive performance underscores its resilience and attractiveness to investors.

With notable gains across indices and sectors, coupled with favorable movements in interest rates and forex, the market continues to present opportunities for investors seeking growth and stability in their portfolios.

As the financial landscape evolves, prudent decision-making and strategic investments remain key to navigating the dynamic market environment effectively.