CBN interest rate cut triggers N1.141trn loss at NGX

Investors on the Nigerian equities market suffered a major setback on Tuesday, losing N1.141 trillion in market value after the Central Bank of Nigeria reduced the benchmark interest rate by 50 basis points to 26.50 percent.

Trading at the Nigerian Exchange Limited ended in the red, as heavy sell-offs across large-cap, consumer goods, and insurance stocks weighed on overall performance.

Stocks such as DAAR Communications, Tantalizers, BUA Foods, Ellah Lakes, and Japaul Gold, alongside 35 other equities, recorded price declines, dragging the market lower.

As a result, market capitalization fell by N1.141 trillion, representing a 0.92 percent drop, to close at N124.827 trillion compared to N125.968 trillion recorded in the previous session.

Similarly, the All-Share Index 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.

On the losers’ chart, Tantalizers and DAAR Communications led with a 10 percent decline each, closing at N4.86 and N2.25 per share, respectively.

On the gainers’ table, Jaiz Bank topped the chart with a 10 percent increase, followed by Infinity Trust Mortgage Bank and First City Monument Bank.

In terms of trading activity, investors exchanged 1.14 billion shares valued at N53.4 billion in 72,218 deals, compared to 1.3 billion shares worth N31.5 billion traded in 95,091 transactions on Monday.

Analysis of market activity 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.

Meanwhile, Japaul Gold recorded the highest volume for the day, with 102 million shares traded.