Nigerian Stock Market Reverses Gain After CBN's MPC Meeting

• The Nigerian stock market reversed Tuesday’s brief rebound, with the All-Share Index falling 0.49% Wednesday
• There were selloffs in Cadbury Nigeria Plc, BUA Cement Plc, Nigerian Breweries Plc, NEM Insurance Plc
• GTCO dominated market activity with 134.12 million shares worth N11.57 billion, followed by Access Holdings Plc

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian stock market failed to sustain Tuesday’s brief recovery, reversing back into a negative as the benchmark All-Share Index (ASI) fell by 0.49% in intraday trading on Wednesday.

Data from NGX revealed that the market at 143,064.57 points compared to 143,763.13 points the previous session.

While, Market capitalisation declined by N444.32 billion to close at N91.00 trillion, while the year-to-date (YTD) return slipped to 39.00%.

CBN MPC unchanged

The market performance on Wednesday followed the Central Bank of Nigeria decision to keep the Monetary Policy Rate at 27%.

Read also

NBS Report: Prices of beans, garri, maize, others sharply drop in one month

Ayodele Akinwunmi, Chief Economist, United Capital Plc told Legit.ng that the CBN decision was a welcome development.

He said:

"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."

Top gainers after Wednesday trading

• AIICO Insurance Plc rose from N3.20 to N3.52, gaining N0.32 (+10.00%).
• NCR Nigeria Plc advanced from N45.20 to N49.70, adding N4.50 (+9.96%).
• Ikeja Hotel Plc increased from N22.85 to N25.00, rising N2.15 (+9.41%).
• Prestige Assurance Plc gained from N1.49 to N1.60, up N0.11 (+7.38%).
• Sterling Financial Holdings Company Plc moved from N7.30 to N7.80, adding N0.50 (+6.85%).

Top losers

• Learn Africa Plc fell from N5.80 to N5.22, shedding N0.58 (–10.00%).
• Cadbury Nigeria Plc dropped from N58.95 to N53.10, losing N5.85 (–9.92%).
• Meyer Plc declined from N16.15 to N14.55, down N1.60 (–9.91%).
• UPDC Plc fell from N6.00 to N5.47, losing N0.53 (–8.83%).
• International Breweries Plc decreased from N12.00 to N11.00, shedding N1.00 (–8.33%).

Read also

New petrol prices as importers compete with Dangote Refinery

Most active stocks

A total of 738.35 million shares valued at N35.54 billion were traded in 19,919 deals, representing a 32.76% increase in volume.

• Guaranty Trust Holding Company Plc (GTCO) led with 134.12 million shares worth N11.57 billion.
• Access Holdings Plc traded 110.52 million shares valued at N2.29 billion.
• FBN Holdings Plc exchanged 62.78 million units worth N1.95 billion.
• United Bank for Africa Plc (UBA) traded 39.27 million shares valued at N1.42 billion.
• Nigerian Breweries Plc recorded 37.99 million shares worth N2.51 billion.

Zenith Bank reacts to reported plan to buy another bank

Earlier, Legit.ng reported that Zenith Bank Plc has dismissed media reports from various sources claiming it is in talks to acquire Paramount Bank in Kenya.

The lender, in a statement signed by its Company Secretary, Michael Otu, released on NGX, said that no such transaction has been initiated or approved.

Read also

Nigeria’s money supply jumps to N117.8 trillion in two years, CBN data reveals

The bank confirmed it is exploring regional expansion and has begun early regulatory engagements in East Africa.

Source: Legit.ng