Nigerian Stocks Plunge by 0.40% After CBN Rate Cut

By Dipo Olowookere

Nigerian stocks were in correction mode on Tuesday, retreating by 0.40 per cent at the close of business despite the Central Bank of Nigeria (CBN) lowering the interest rate by 0.50 per cent to 27.5 per cent.

Also, the revelation by the National Bureau of Statistics (NBS) on Monday that the Gross Domestic Product (GDP) of Nigeria increased by 4.23 per cent in the second quarter of 2025 did not trigger a buying pressure at the Nigerian Exchange (NGX) Limited during the session.

It was observed the bourse was under selling pressure yesterday and this was across all the key sectors of the market, with the energy space recording the highest loss, 1.80 per cent.

Further, the banking index depreciated by 1.04 per cent, the commodity counter fell by 0.90 per cent, the insurance industry plunged by 0.79 per cent, the industrial goods sector depreciated by 0.60 per cent, and the consumer goods industry tumbled by 0.11 per cent.

Consequently, the All-Share Index (ASI) went down by 568.62 points to 140,929.60 points from 141,498.22 points and the market capitalisation moderated by N326 billion to N89.199 trillion from N89.525 trillion.

Investor sentiment was weak on the second trading session of the week, as Customs Street ended with 35 price losers and 16 price gainers, indicating a negative market breadth index.

Dangote Sugar lost 10.00 per cent to sell for N54.00, Wema Bank declined by 8.27 per cent to N18.85, Secure Electronic Technology shed 6.25 per cent to 75 Kobo, Access Holdings shrank by 4.98 per cent to N24.80, and Aradel Holdings decreased by 4.76 per cent to N560.00.

On the flip side, Thomas Wyatt gained 9.80 per cent to close at N2.80, Chellarams appreciated by 9.59 per cent to N16.00, RT Briscoe expanded by 9.50 per cent to N3.92, Custodian Investments chalked up 9.40 per cent to quote at N48.30, and NGX Group improved by 6.99 per cent to N58.95.

It was a busy market on Tuesday as the level of activity increased, with traders transacting 759.1 million equities valued at N25.7 billion in 23,657 deals compared with the 488.6 million equities worth N13.7 billion traded in 28,621 deals on Monday.

This showed that the number of deals went down by 17.34 per cent, while the trading volume and value went up by 55.36 per cent and 87.59 per cent, respectively.

Consolidated Hallmark was the most active stock for the day, trading 169.6 million units valued at N644.7 million, Zenith Bank exchanged 104.4 million units worth N6.9 billion, First Holdco transacted 101.0 million units for N3.2 billion, Fidelity Bank sold 52.5 million units valued at N1.1 billion, and GTCO traded 45.0 million units worth N4.1 billion.