Stocks Gain N374bn On Rate Cut Boost

Investors flocked to stocks yesterday as the Nigerian equities market sustained its rally, gaining N374 billion in market capitalisation following the Central Bank of Nigeria's 350-basis-point cut in the Monetary Policy Rate (MPR). The reduction in interest rates on Nigerian Treasury Bills (NTBs) following the MPR cut contributed to the shift in returns in the fixed income market, with stop rates falling across all tenors at the latest Treasury Bills auction. The stop rates for the 91-day, 182-day, and 364-day NTBs contracted by 80 basis points, 70 basis points, and 73 basis points to 15.50 per cent, 15.80 per cent, and 15.89 per cent respectively. Analysts attributed the stock market gain to expectations of portfolio rotation from fixed income to equities as investors seek higher returns.

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