NSE ASI Rebounds On Interest Rate Increase

After a long while, the local equities rebounded on resumed bargain hunting activities as overall performance measures, the All Share Index and market capitalisation, revved by 1.13 percent each, just as the Monetary Policy Committee (MPC) members of the Central Bank of Nigeria (CBN) hiked the interest rate to 14 percent.
All Share Index appreciated by 312.12 basis points or 1.13 per cent to close at 27,942.02 points as against 27,629.90 points recorded on Monday, while market capitalisation rose by N108.227 billion to close at N9.597 trillion as against N9. 489 trillion recorded in the last trading day.
At the close of business, twenty-four stocks gained while fourteen lost.
Shares of Nigerian Breweries, Guaranty Trust Bank, Ecobank Transnational Incorporated and Oando gained N1.63, N1.06, N1.04 and N0.57 to close at N146.54, N22.36, N13.43 and N6.20 respectively. Conversely, shares of Seplat Petroleum Development Company, 7UP Bottling Company, Lafarge Africa (WAPCO) and Fidson Healthcare Plc depreciated by N15.67, N6.45, N0.24 and N0.06 to close at N297.83, N134.00, N59.00 and N1.94 respectively.
Nigerian Interbank Treasury Bills True Yields (NITTY) increased across all the maturities amid profit taking activity – yields on one month, three months, six months and twelve months rose to 14.15 per cent, 15.69 percent, 15.95 per cent and 18.07 per cent respectively.
Meanwhile, Nigerian interbank offered rates fell across all maturities on liquidity ease following recent FAAC inflows – NIBOR for overnight funds, one month, three months and six months maturities fell to 4.33 per cent, 16.65 per cent, 17.24 per cent and 18.70 per cent respectively.
Bond moved in mixed directions across maturities – 10-year, 16.39 per cent FGN January 2022 debt fell by N0.22 (yield rose to 15.16 per cent). However, the three-year, 13.05 per cent FGN AUG 2016 debt rose by N0.09 (yield fell to 10.25 per cent).
Elsewhere, Nigeria’s Eurobond prices fell across all maturities on profit taking – 5-year, 5.13 per cent July 12, 2018 bond fell by USD0.33 (yield rose to 4.49 per cent).
United Bank for Africa emerged the most traded equity with an exchange of 76.911 million shares worth N349.945 million. Access Bank having accounted for 42.746 million shares valued at N231.020 million while Zenith Bank sold 28.198 million shares worth N457.178 million trailed it; FBN Holdings exchanged 25.354 million shares valued at N89. 865 million while Transnational Corporation traded 18.926 million shares worth N28.532 million.