The Nigerian equities market staged a modest but welcome comeback on Tuesday, November 25, recovering from six consecutive sessions of sustained losses. The market added N95 billion in value as the Nigerian Exchange (NGX) reversed its recent bearish trajectory, lifting the total market capitalization to N91.441 trillion. Similarly, the benchmark All-Share Index (ASI) inched up by 148.52 points, or 0.10%, closing at 143,763.13 points.
This rebound—though marginal—was largely driven by renewed interest in select bellwether and mid-tier stocks. Gains reported in GTCO (+1.4%), Sterling Financial Holdings (+9.0%), First Bank Holdings (+1.5%), and UACN (+7.2%) supported overall sentiment and helped pull the market back into positive territory. As a result, the Month-to-Date (MtD) loss slightly moderated to -6.7%, while the Year-to-Date (YtD) performance improved further to +39.7%, underscoring the market’s resilience despite bouts of volatility.
Market Performance Overview
Tuesday’s session recorded mixed trading activity across the broader market. Total trading volume fell by 20% to 556.15 million units, while the value of trades amounted to N18.71 billion across 19,500 deals. FirstBank Holdings was the most actively traded stock in terms of volume with 93.72 million units, while STANBIC led by value at N3.21 billion.
Sectoral performance was mixed as well. The Banking Index rose by 0.4%, reflecting renewed appetite for financial stocks, while the Insurance and Oil & Gas indices declined by 0.8% and 0.2% respectively. The Industrial Goods and Consumer Goods indices were unchanged, showing little movement during the session.
CBN’s Monetary Policy Retention Boosts Market Sentiment
The market’s positive turn was largely tied to investor reaction to the outcome of the Central Bank of Nigeria’s (CBN) 303rd Monetary Policy Committee (MPC) meeting, where policymakers opted to retain all key monetary parameters. Many traders interpreted this decision as a signal of short-term macroeconomic stability.
According to Mr. Tajudeen Olayinka, CEO of Wyoming Capital and Partners, the unchanged policy stance offered investors clarity after weeks of market uncertainty. He noted that maintaining the benchmark interest rate helped restore confidence among cautious investors, prompting renewed interest in fundamentally strong, mid- and large-cap stocks.
The retained monetary parameters are as follows:
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Monetary Policy Rate (MPR): 27%
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Cash Reserve Ratio (CRR): 45% for commercial banks, 16% for merchant banks
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Public sector deposits (non-TSA): 75% CRR
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Liquidity Ratio: 30%
These parameters reflect the CBN’s continued efforts to balance inflation control with financial stability, particularly in a period marked by elevated liquidity levels and high domestic interest rates.
Market Breadth and Top Movers
Market breadth closed positive, with 26 gainers outperforming 20 losers. Among the top performers were NCR Nigeria (+9.98%), Ikeja Hotel (+9.86%), Prestige Assurance (+9.56%), Eunisell Interlinked (+9.49%), and SterlingNG (+8.96%). Conversely, Union Dicon and Caverton both shed 10%, topping the losers’ list, followed by Sunu Assurance (-4.78%), Lasaco Assurance (-4.58%), and AXA Mansard (-4.23%).
Despite the day’s positivity, the slowdown in overall market activity suggests that investors are still trading cautiously, awaiting stronger macroeconomic signals before making large directional moves.
Outlook
Analysts at Cordros Capital expect the CBN’s decision to maintain monetary policy rates to sustain investor confidence in the near term. However, they warn that market direction will continue to hinge on the strength of corporate earnings, liquidity conditions, and the broader economic environment. While policy stability provides a supportive backdrop, the market is likely to remain sensitive to macroeconomic data releases and global financial conditions.
