Nigerian Equities Market Rebounds with N95 Billion Gain as CBN Holds Rates Steady

The Nigerian equities market staged a notable recovery on Tuesday, November 25, bouncing back from six consecutive days of declines. The market gained N95 billion in total capitalization to close at N91.441 trillion, with the benchmark All-Share Index (ASI) advancing by 148.52 points, or 0.10%, to 143,763.13 points. Key gains in stocks such as GTCO (+1.4%), STERLINGNG (+9.0%), FIRSTHOLDCO (+1.5%), and UACN (+7.2%) drove the market’s positive momentum.

Month-to-Date (MtD) returns slightly improved to -6.7%, while Year-to-Date (YtD) performance remained strong at +39.7%. Despite the rally, market activity slowed, with total traded volume falling 18.62% to 556.15 million units, valued at N18.71 billion across 19,500 deals. FirstBank Holdings led the trading volume with over 93 million shares exchanged, highlighting sustained interest in major financial institutions.

Market analysts attribute the rebound to investor optimism following the Central Bank of Nigeria’s (CBN) 303rd Monetary Policy Committee (MPC) meeting, where key policy parameters were held steady. “The policy stance signaled stability to market participants, spurring interest in medium and large-cap stocks,” said Mr. Tajudeen Olayinka, CEO of Wyoming Capital and Partners. The CBN’s decision to maintain the Monetary Policy Rate (27%) and high cash reserve ratios renewed buying interest among cautious investors.

Sector performance showed a mixed trend, with the Banking Index up 0.4% while the Insurance Index dipped 0.8% and the Oil & Gas Index declined 0.2%. Consumer and Industrial Goods sectors remained flat. Top gainers included NCR (+9.98%), Ikeja Hotel (+9.86%), Prestige (+9.56%), Eunisell (+9.49%), and Sterling Bank (+8.96%), while top losers were UnionDicon (-10%), Caverton (-10%), and Sunu Assur (-4.78%).

Looking ahead, market analysts from Cordros Capital expect the CBN’s policy continuity to sustain investor confidence in the short term. However, they caution that liquidity flows and earnings resilience will remain crucial factors influencing market direction until stronger macroeconomic indicators emerge. Investors are advised to monitor both policy stability and corporate performance for insights into the market’s next move.

source: nairametrics