CBN Rate Cut Triggers ₦1.141trn Loss in NGX Market Value

Investors on the Nigerian Exchange Limited (NGX) suffered a sharp loss on Tuesday as the equities market shed ₦1.141 trillion in value, following a decision by the Central Bank of Nigeria (CBN) to cut the benchmark interest rate by 50 basis points to 26.50 per cent.

Market sentiment turned negative during the session, with sustained sell pressure across major large-cap counters, alongside notable weakness in consumer goods and insurance stocks. The broad decline pulled key indicators lower and reversed some of the market’s recent gains.

At the close of trading, total market capitalisation fell by ₦1.141 trillion, representing a 0.92 per cent drop, to ₦124.827 trillion, down from ₦125.968 trillion recorded in the previous session. The NGX All-Share Index also declined by 1,778.95 points, or 0.92 per cent, closing at 194,484.61 compared to 196,263.56 on Monday.

The pullback reduced the market’s year-to-date return to 24.98 per cent. Market breadth was negative, with 40 stocks closing lower against 27 gainers.

Several equities recorded losses, including DAAR Communications, Tantalizers, BUA Foods, Ellah Lakes, and Japaul Gold, alongside dozens of others that ended the session in the red. On the decliners’ table, Tantalizers and DAAR Communications led the losses, each falling by 10 per cent to close at ₦4.86 and ₦2.25 per share, respectively.

On the positive side, Jaiz Bank topped the gainers’ chart with a 10 per cent appreciation, followed by Infinity Trust Mortgage Bank and First City Monument Bank, which also posted gains.

Trading activity showed mixed signals. Investors exchanged 1.14 billion shares valued at ₦53.4 billion in 72,218 deals, compared to 1.3 billion shares worth ₦31.5 billion traded in 95,091 transactions on Monday. 

While trading volume declined by 12 per cent and the number of deals dropped by 24 per cent, the total value of transactions rose by 44 per cent, suggesting heavier value concentration in select counters.

Japaul Gold recorded the highest volume for the day, with 102 million shares traded, reflecting strong activity in the stock despite the broader market decline.