- Stock Market Holds Up Ahead of MPC Decision
- MtD & YtD returns improve to +1.1% and +37.8%
- Traders cautious, awaiting MPC meeting outcomes
Nigeria’s stock market sustained optimism last week as investors await the upcoming MPC meeting.
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EKO HOT BLOG reports that the Nigerian Exchange Limited (NGX) saw continued buying interest with notable gains from major stocks like BUA Foods (+6.7%), Guinness Nigeria (+28.6%), Dangote Cement, and Nigerian Breweries, which helped lift the All-Share Index (ASI) by 0.9% week-on-week to close at 141,854.48 points. Month-to-date and year-to-date returns also improved to +1.1% and +37.8% respectively.
The positive mood comes ahead of the Central Bank of Nigeria’s Monetary Policy Committee meeting scheduled for September 22-23, 2025. Analysts believe decisions on the Monetary Policy Rate (MPR) in that meeting will be critical in determining investor appetite in the near term.
Trading activity, however, showed signs of caution both volume and value dropped significantly week-on-week, down by 38.1% and 38.3% respectively. Despite lower turnover, sector gains were seen: the Consumer Goods Index rose by 5.5%, Oil & Gas by 2.8%, and Industrial Goods by 0.1%. On the other hand, the Insurance Index fell by -4.7% and the Banking Index by -2.6%.
Out of the 2.735 billion shares traded, NGX transactions were worth about ₦85.197 billion in 127,284 deals, compared to the previous week where trading involved 3.188 billion shares valued at ₦99.685 billion. The Financial Services industry remained most active, contributing about 70% of volume and 44.4% of value. ICT and Services sectors followed, though with much smaller activity.
Analysts from Cordros Research noted that while sentiment is positive, investors are watching closely to see if the MPC will adjust rates or maintain the status quo. The decisions will likely shape whether market momentum continues or cools off.
For now, the index’s upward movement offers a reprieve for investors, but many expect that the real test is just around the corner at the MPC meeting.
