MPC: Stock investors maintain cautious stance, lose N290bn

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Nigerian stock market investors are feeling the pinch after the recent Monetary Policy Committee (MPC) meeting. Analysts predict continued asset reallocation away from equities due to the MPC’s decision to raise interest rates.

The market started positive but reversed course as investors reacted to the 150 basis point hike in the Monetary Policy Rate (MPR) to 26.25%. A wave of selling followed, resulting in a N290 billion loss in investor wealth. Banking stocks were hit particularly hard, with UBA, FBN Holdings, and Zenith Bank all experiencing significant losses.

The All-Share Index (ASI) dropped by 0.52% to close at 97,612.51 points. Analysts at Cordros Capital expect cautious trading in the near term due to the “hawkish tone” of the MPC decision, which could continue to discourage investors from equities.

Source: Vanguard

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