Lagos, Jan. 21, 2025 – The Nigerian equity market surged by N472 billion, or 0.75%, on Tuesday following the National Communication Commission’s (NCC) approval of a 50% tariff adjustment for telecommunications services, marking the first rate change since 2013.
Thank you for reading this post, don't forget to subscribe!Investor optimism in MTN Nigeria and tier-one banking stocks, including Guaranty Trust Holding Company (GTCO), Zenith Bank, and Access Corporation, fueled the market rally.
The NCC’s tariff adjustment, prompted by rising operational costs, grants operators a maximum 50% increase, significantly below the over 100% initially proposed by network providers. The decision, authorized under Section 108 of the Communications Act, 2003, adheres to cost study limits set in 2013.
Following the announcement, the Nigerian Exchange Ltd. (NGX) market capitalisation rose from N62.861 trillion to N63.333 trillion, while the All-Share Index increased by 768 points to close at 103,137.99. The Year-To-Date (YTD) return advanced to 0.21%.
Market breadth remained even with 29 gainers and 29 losers. MTN topped the gainers’ chart, climbing 10% to N256.30 per share, while Secure Electronic Technology Plc led the losers, dropping 9.88% to 73k per share.
Turnover fell by 32.24% from the previous session, with 440.32 million shares worth N11.97 billion traded across 13,087 deals. Lasaco Assurance led in volume, trading 108.04 million shares, while Seplat recorded the highest value at N3.54 billion.
The tariff adjustment and investor response signal evolving market dynamics, with telecom and banking sectors driving growth amid broader economic shifts.
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