Nigeria’s equities market rebounded on Wednesday, posting a 0.87% gain as investors positioned ahead of the Monetary Policy Committee (MPC) decision scheduled for Thursday.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) closed at 108,609.51 points, recovering from Tuesday’s decline following the release of Nigeria’s rebased inflation report for January.
Market capitalisation also rose, climbing to N67.684 trillion from N67.179 trillion, reflecting renewed investor confidence after days of cautious trading.
The market rally was largely driven by BUA Foods, Eterna, RT Briscoe, and Sunu Assurances, which recorded significant price appreciation.
BUA Foods led the gainers, advancing from N373.50 to N410.50, adding N37 or 9.91%. RT Briscoe followed closely, rising from N2.46 to N2.63, a 6.91% gain.
Eterna also climbed, increasing from N40 to N42.50, adding N2.50 or 6.25%, while Sunu Assurances rose 6.13% from N6.52 to N6.92.
Investor participation remained strong, with 12,970 deals recorded as market players exchanged 343.7 million shares worth N8.63 billion.
Access Holdings, Fidelity Bank, Zenith Bank, Sterling Financial Holdings, and Coronation Insurance ranked among the most actively traded stocks.
Despite the positive momentum, market analysts remain cautious as the MPC deliberates on its interest rate decision, which could influence short-term market direction. The committee, which commenced its first meeting of 2025 on Wednesday, is weighing policy measures amid declining inflation and evolving liquidity conditions.
With inflation moderating to 24.48% under the rebased Consumer Price Index (CPI), investors are closely watching whether the Central Bank of Nigeria (CBN) will maintain its hawkish stance or consider easing rates to support economic growth.
Market sentiment remains tied to the MPC’s final decision with investors adjusting their portfolios accordingly. If rates remain high, fixed-income instruments may continue to attract capital, while a potential rate cut could drive further equities market gains in the coming sessions.
