Economy
Stocks Post Highest Daily Loss in 11 Months After CBN’s Rate Hike
By Dipo Olowookere
The decision of the Central Bank of Nigeria (CBN) to increase the monetary policy rate (MPR) to 13.0 per cent from 11.5 per cent on Tuesday after its third Monetary Policy Committee (MPC) meeting for the year had a spiral effect on local stocks.
At the Nigerian Exchange (NGX) Limited yesterday, the action of the central bank in two years further dampened the mood of investors, who, upon receiving the news, embarked on a selling spree.
This put pressure on the exchange as it shed 1.82 per cent, the highest it has lost in a single trading session in almost a year (11 months).
Consequently, the All Share Index (ASI) deflated by 961.87 points to 51,949.64 points from 52,911.51 points, while the market capitalisation shrank by N518 billion to N28.007 trillion from N28.525 trillion.
Analysis showed that the bearish mood was across the key sectors of the market as none closed in the green region. The consumer goods index lost 1.21 per cent, the insurance space fell by 1.09 per cent, the industrial goods counter depleted by 0.61 per cent, the banking sector crashed by 0.39 per cent, while the energy index depreciated by 0.32 per cent.
However, the activity chart was green due to the cross deals witnessed in Ecobank and others, causing the trading volume, value and number of deals to rise by 173.48 per cent, 149.79 per cent and 25.54 per cent respectively.
A total of 720.2 million shares worth N8.9 billion were traded in 6,096 deals compared with the 263.3 million shares worth N3.6 billion traded in 4,856 deals on Monday.
Ecobank recorded the highest trades by volume for selling 257.6 million stocks valued at N3.0 billion, Jaiz Bank traded 78.0 million shares worth N69.7 million, Access Holdings exchanged 60.5 million equities worth N605.0 million, UAC Nigeria transacted 52.2 million shares for N673.1 million, while Transcorp sold 31.4 million equities valued at N39.7 million.
Business Post reports that investor sentiment was weak during the session as there were 39 price losers and 17 price gainers led by Japual, which grew by 10.00 per cent to 33 kobo.
Industrial and Medical Gases rose by 9.89 per cent to N10.00, MRS Oil grew by 9.70 per cent to N16.40, Abbey Mortgage Bank appreciated by 9.09 per cent to N1.80, while Academy Press improved by 8.15 per cent to N1.46.
Conversely, Guinness Nigeria recorded the highest decline after it dropped 10.00 per cent to sell at N88.20, Global Spectrum Energy Services lost 9.77 per cent to trade at N2.77, Axa Mansard depreciated by 9.73 per cent to N2.04, Chams went down by 8.70 per cent to 21 kobo, while Veritas Kapital depleted by 8.70 per cent to 21 kobo.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
