Nigerian Stocks Shed ₦220bn as Investors Book Profits Ahead of MPC Rate Decision
The Nigerian Exchange (NGX) witnessed a sharp pullback on Tuesday, wiping ₦220 billion off its market capitalisation as investors locked in profits ahead of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) meeting. The All-Share Index (ASI) slipped 0.40 per cent to close at 140,929.60 basis points, down 568.62 points from the previous session. Despite the setback, Nigerian equities still boast a solid 36.92 per cent year-to-date return, reflecting resilient investor appetite.
Market breadth tilted negative with 35 losers against just 16 gainers, signalling widespread profit-taking. Heavyweights like Dangote Sugar Refinery led the laggards, falling 10 per cent, followed by Wema Bank (-8.27 per cent), Secure Electronic Technology (-6.25 per cent), Access Holdings (-4.98 per cent) and Consolidated Hallmark Insurance (-4.75 per cent). The sell-off underscores investors’ caution as monetary policy decisions loom.
Some counters, however, managed to buck the trend. Thomas Wyatt Nigeria topped the gainers’ list with a 9.80 per cent jump, while Chellarams Plc gained 9.59 per cent, RT Briscoe Plc advanced 9.50 per cent, Custodian & Allied Plc appreciated 9.40 per cent and Nigerian Exchange Group rose 6.99 per cent. These gains highlight selective investor confidence even in a risk-off trading environment.
All key sectoral indices mirrored the market’s weakness, with the NGX Top 30 Index down 0.47 per cent, the NGX Industrial Index sliding 0.60 per cent and the NGX Pension Index dropping 0.72 per cent. The Consumer Goods Index dipped a modest 0.11 per cent but still holds an eye-catching 92.23 per cent return so far this year. Trading remained robust, as 759.1 million shares worth about ₦25.72 billion exchanged hands in 23,639 deals. Consolidated Hallmark Holdings led activity with 170 million shares traded, followed by Zenith Bank (104 million shares), FBN Holdings (101 million shares) and Fidelity Bank (52.5 million shares).
Analysts attribute the sell-off to profit-taking ahead of the MPC’s interest rate decision. They expect the pullback to be short-lived given the market’s strong fundamentals and upcoming corporate actions likely to inject fresh liquidity. Market watchers advise bargain hunters to focus on fundamentally sound stocks, as current price corrections could present attractive entry points. With the MPC decision imminent, trading is likely to stay mixed in the coming sessions as investors weigh interest rate expectations against Nigeria’s impressive equity returns.
source: tribune