The Nigerian equities market staged an impressive rebound on Tuesday, recovering N95 billion in market capitalization after six straight sessions of declines. The market uplift came shortly after the Central Bank of Nigeria (CBN) announced it would maintain its tight monetary policy stance, leaving benchmark interest rates unchanged.
Investors appeared encouraged by the CBN’s decision, which provided a measure of stability following weeks of pressure on listed stocks. Market analysts noted that the policy hold helped reduce uncertainty, giving institutional investors a fresh incentive to re-enter the market after a period dominated by sell-offs.
Trading activity on the Nigerian Exchange (NGX) reflected renewed optimism, with key sectors such as banking, consumer goods, and industrials driving much of the gains. Blue-chip stocks, which had been hit hardest during the recent downturn, saw increased demand as bargain hunters snapped up undervalued shares.
Market watchers say the positive sentiment could extend into the coming days, provided macroeconomic indicators remain relatively stable. They added that the equities rebound shows investor appetite is still strong despite Nigeria’s high interest-rate environment and lingering inflationary concerns.
With year-end trading approaching, analysts expect more cautious but opportunistic moves from investors looking to maximize portfolio returns. Tuesday’s recovery, they say, is an encouraging sign that confidence in the Nigerian market is gradually returning.
source: vanguard