Quick Summary:
Equities lose N1.141 trillion in value following CBN’s 50bps rate cut to 26.50%, triggering broad sell-offs across major sectors.
Investors on the Nigerian Exchange Limited (NGX) suffered a major setback on Tuesday, losing ₦1.141 trillion in market value after the Central Bank of Nigeria (CBN) reduced the benchmark interest rate by 50 basis points to 26.50 percent.
The market closed deep in the red, as heavy sell-offs across large-cap, consumer goods, and insurance stocks dragged overall performance lower.
Broad-Based Sell-Off Hits Key Stocks
Equities such as DAAR Communications, Tantalizers, BUA Foods, Ellah Lakes, and Japaul Gold, alongside 35 other stocks, recorded price declines.
As a result, market capitalization fell by ₦1.141 trillion, representing a 0.92 percent drop, to close at ₦124.827 trillion, compared to ₦125.968 trillion in the previous session.
Similarly, the All-Share Index (ASI) shed 1,778.95 points, or 0.92 percent, to settle at 194,484.61, down from 196,263.56 posted on Monday.
The downturn trimmed the year-to-date return to 24.98 percent, while market breadth closed negative, with 40 decliners against 27 gainers.
Top Losers and Gainers
On the losers’ chart, Tantalizers and DAAR Communications led with a 10 percent decline each, closing at ₦4.86 and ₦2.25 per share, respectively.
On the gainers’ table, Jaiz Bank topped with a 10 percent increase, followed by Infinity Trust Mortgage Bank and First City Monument Bank (FCMB).
Trading Activity and Volume Analysis
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.
Market analysis showed a 12 percent decline in trading volume and a 24 percent drop in the number of deals, although the total value of transactions rose by 44 percent.
Japaul Gold recorded the highest trading volume for the day, with 102 million shares exchanged.
Outlook
Analysts say the market reaction reflects investor caution following the CBN’s unexpected rate cut, which may have triggered profit-taking and portfolio rebalancing across key sectors.
Market watchers expect volatility to persist in the short term as investors reassess monetary policy direction and corporate earnings outlook.
