NGX loses N202 billion in value as Investors react to CBN’s rate decision

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The Nigerian Exchange Limited (NGX) has recorded a decline in investors’ wealth, losing N202 billion in value, following the Central Bank of Nigeria’s decision to hold the interest rate at 7.5 percent. The market capitalisation of listed equities depreciated by 0.3 percent to N68.751 trillion, while the all-share index fell by 0.6 percent to 109,028.62 points.

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The decline was triggered by sell-offs in the banking and energy sectors as investors embarked on portfolio rebalancing activities after the CBN’s announcement. The listing of 34.2 billion new ordinary shares from the United Bank for Africa (UBA) Plc’s Rights Issue also contributed to the decline, accounting for a notional wealth reduction of approximately N201.4 billion.

Despite the decline, market activity remained robust, with weekly trading volume surging by 50.8 percent to 3.92 billion units and the number of deals executed rising by 35.7 percent to 105,012. The total value of trades also grew by 17.2 percent, reaching N74.61 billion.

The consumer goods index led the gainers with a 2.2 percent rise, driven by buying interest in Nestlé Nigeria, Tantalisers, Guinness Nigeria, and Ikeja Hotel. The NGX insurance and industrial goods indices followed with modest gains of 0.73 percent and 0.72 percent, respectively.

On the other hand, the NGX Oil & Gas Index recorded the highest decline, shedding 3.4 percent, followed by a 1.52 percent drop in the NGX Banking Index and a 0.75 percent decline in the NGX Commodity Index. These losses were largely attributed to sell-offs in Fidelity Bank, Aradel Holdings, AccessCorp, and Wema Bank.

The financial services sector dominated the chart, accounting for 61.2 percent of the total traded volume and 43.1 percent of total value. A total of 2.405 billion shares worth N32.271 billion were exchanged within the sector across 44,570 deals, reinforcing its central role in market liquidity

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