Nigeria’s equities market recorded another decline of N166 billion on Tuesday as investors reacted cautiously to the release of the rebased inflation data for January 2025.
At the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell by 0.25 percent in its second consecutive loss this week.
The ASI declined from 107,937.74 points to 107,670.98 points while the total market capitalization dipped from N67.345 trillion to N67.179 trillion.
The stock market’s year-to-date (YtD) return further dropped to +4.61 percent to reflect the weak sentiment among investors despite expectations of improved macroeconomic indicators.
The downturn was primarily driven by selloffs in major stocks, including Cadbury Nigeria Plc, which fell from N32 to N29.10, losing N2.90 or 9.06 percent.
Union Dicon dropped from N8.15 to N7.35, declining by 80 kobo or 9.82 percent while The Initiates Plc slipped from N4.45 to N4.01, shedding 44 kobo or 9.89 percent.
Earlier on Tuesday, the National Bureau of Statistics (NBS) released its rebased inflation report that revealed Nigeria’s inflation rate grew at a 24.48 percent pace in January 2025 from 34.80 percent in December 2024.
Adeyemi Adeniran, Statistician-General of the Federation, noted that the rebased inflation figures provide a more accurate representation of consumer spending patterns and economic conditions in the country.
Commenting on the impact of the inflation rebase, analysts at Comercio Partners stated “As Nigeria edges closer to Comercio’s 2025 Outlook projection of inflation easing to 15 percent-20 percent by mid-year, this recalibration could be the pivotal moment in the nation’s fight against inflationary pressures.”
Trading activity remained robust as investors exchanged 408.7 million shares worth N11.26 billion in 14,174 deals.
Stocks such as Access Holdings, UBA, Guinness, Fidelity Bank and Zenith Bank were among the most actively traded.
Despite the optimism surrounding the rebased inflation data, the market’s decline suggests that investors remain cautious, awaiting further clarity on macroeconomic policies and corporate earnings before making significant commitments.
As market conditions evolve, analysts expect sector-specific performance, monetary policy decisions and global market trends to influence investor sentiment in the coming weeks.
