Nigeria Exchange Limited Records N700 Billion Loss Following CBN’s Monetary Policy Rate Hike
The Nigeria Exchange Limited (NGX) witnessed a bearish trend on Wednesday, resulting in investors recording a loss of N700 billion. This downturn occurred just 24 hours after the Central Bank of Nigeria (CBN) raised the monetary policy rate to 22.75 per cent.
The All-Share Index (ASI) declined by 1.27 per cent, falling below the 100,000 points mark for the first time in over a month, closing at 99,302.57. This marks the third consecutive decline in the ASI since Monday, February 26.
The decision to hike the monetary policy rate to a record high of 22.75 per cent, up from 18.75 per cent, significantly impacted market sentiments, leading to widespread losses across the board, except for the oil and gas sector.
Investors and analysts are closely monitoring the situation, as the market continues to react to the CBN’s policy change. The implications of this development are being analysed, with many expressing concern over the potential long-term effects on the economy and investment climate.
Despite the challenging economic environment, some sectors, such as oil and gas, have shown resilience, providing a glimmer of hope for investors. However, the overall sentiment remains cautious as market participants navigate the uncertainties brought about by the recent monetary policy changes.
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