Naira Gains, NSE Jumps by N577bn after CBN Rate Decision

 

 

The Nigerian Stock Exchange (NSE) continued its rally on Wednesday following the decision of the Central Bank of Nigeria (CBN) monetary policy committee (MPC) to hold key interest rate at 14 percent for 12 months running.

 

On Tuesday, Godwin Emefiele, the governor of the bank, announced that the committee decided to “retain the MPR at 14 per cent, CRR at 22.5 percent, retain the liquidity ratio at 30.00 percent and retain the asymmetric corridor at +200 and -500 basis points around the MPR”.

 

Following the decisions, the NSE took an upward swing on Tuesday to cross the N12 trillion mark for market capitalisation, closing at  N12,085,339,769,999.12.

 

On Wednesday, the rally continued as the bourse gained N577,392,634,642 to close at N12,662,732,404,641.14.

 

All share index (ASI) also leaped to 36,740.77 from 35,065.47 on Tuesday. The naira also appreciated at the parallel market from N365 per dollar to N364 against the greenback.

 

According to Emefiele, the NSE gained by over 30 percent on major indices within the last quarter.

 

“The Committee noted the improvements in the equities segment of the capital market as the All-Share Index (ASI) rose by 33.33 per cent from 25,516.34 on March 31, 2017, to 34,020.37 on July 21, 2017,” Emefile said on Tuesday.