The Nigerian equities market experienced significant selling pressure on Wednesday, reversing the previous day's brief recovery as investors digested the Central Bank's decision to maintain current monetary policy rates.
Market Performance Details
The benchmark All-Share Index declined by 0.49% to close at 143,064.57 points, down from Tuesday's closing figure of 143,763.13 points. Market capitalization suffered a substantial loss of N444.32 billion, settling at N91.00 trillion. The year-to-date return consequently slipped to 39.00%.
CBN Policy Impact on Investor Sentiment
The market downturn followed the Central Bank of Nigeria's Monetary Policy Committee meeting where officials decided to keep the Monetary Policy Rate unchanged at 27%. This decision came despite some market expectations for a rate reduction.
Ayodele Akinwunmi, Chief Economist at United Capital Plc, provided insight on the MPC's stance. "The MPC decision is well grounded and sound. Although I expected a drop in MPR, what they did is still a kind of Monetary Policy easing through the adjustments to the assymentry corridor around the MPR despite," Akinwunmi told Legit.ng.
Top Performers and Decliners
Leading gainers included AIICO Insurance Plc, which rose 10.00% to N3.52, NCR Nigeria Plc advancing 9.96% to N49.70, and Ikeja Hotel Plc gaining 9.41% to N25.00. Prestige Assurance Plc and Sterling Financial Holdings Company Plc also recorded significant gains.
On the losing side, Learn Africa Plc led decliners with a 10.00% drop to N5.22, followed by Cadbury Nigeria Plc falling 9.92% to N53.10, and Meyer Plc declining 9.91% to N14.55. UPDC Plc and International Breweries Plc completed the top five losers.
Trading Activity and Volume
Market activity remained robust with total turnover reaching 738.35 million shares valued at N35.54 billion across 19,919 deals. This represented a substantial 32.76% increase in trading volume compared to previous sessions.
Guaranty Trust Holding Company Plc (GTCO) dominated trading activity with 134.12 million shares worth N11.57 billion changing hands. Access Holdings Plc followed with 110.52 million shares valued at N2.29 billion, while FBN Holdings Plc, United Bank for Africa Plc, and Nigerian Breweries Plc also featured among the most actively traded stocks.
The market's negative performance reflects ongoing investor caution amid the Central Bank's maintained hawkish monetary policy stance, with attention now turning to how these conditions might evolve in coming weeks.
