The Nigerian Exchange Limited’s All Share Index (ASI) has rebounded to a high, reaching 14.77 per cent year to date, according to NGX statistics.
Despite three consecutive interest rate rises by the Central Bank of Nigeria (CBN), the market remained resilient, according to a study of daily trade data.
To combat rising inflation amid both domestic and global headwinds such as spiralling inflation against the backdrop of soaring food prices; higher energy costs as a result of COVID-19 fallout; Russian-Ukraine-induced supply chain disruptions; and the country’s continued insecurity, the CBN raised its overnight Monetary Policy Rate after Monetary Policy Committee meetings 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 the 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 generally positive performance in oil firms globally amidst high oil prices.
