On Wednesday, September 23, 2026, the Nigerian Exchange Limited (NGX) closed on a bullish note, extending its winning streak to 10 consecutive sessions. This was driven by investors' reaction to the Central Bank of Nigeria's (CBN) aggressive 350 basis point reduction in the Monetary Policy Rate (MPR). The benchmark interest rate was dropped to 23.00 percent, its lowest in 31 months. As a result, the NGX All-Share Index (ASI) rose 0.23 percent to 251,191.02 points, with the market's year-to-date return increasing to 61.42 percent.
The rate cut, which took the MPR from 26.5 percent to 23 percent, was the first major test of how investors would reposition following the Monetary Policy Committee's decision. Lower policy rates often reduce the attractiveness of fixed-income instruments' yields, potentially increasing the appetite for equities from investors. Trading activity was quite fierce, with the market trading a total volume of 1.59 billion shares, an 89.97 percent increase from the previous trading session. Financial services took a lion's share of most of the trades, with investors executing 49,736 transactions across all equity boards.
Banking stocks remained among the more actively traded large-cap counters. Zenith Bank rose 2.27 percent to N135, while First HoldCo gained 1.35 percent to N165 and GTCO added 0.15 percent to N137.50. Access Holdings also advanced 1.16 percent. The gains came as investors weighed the potential benefits of lower funding costs against the possibility that declining market rates could eventually compress banks' net interest margins.
At the broader market level, 43 stocks advanced against 20 decliners, reflecting wider participation in Wednesday's rally. Eterna Plc led the gainers, rising 10 percent to N38.50, while Thomas Wyatt gained 9.88 percent. Haldane McCall and Omatek Ventures rose 9.70 percent and 9.63 percent, respectively. NAHCO was also among the strongest performers, gaining 7.69 percent, while NASCON rose 4.20 percent.
On the losing end, Caverton Offshore Support Group fell 9.09 percent, while University Press declined 9 percent. Coronation Insurance dropped 6.30 percent to N2.23, followed by Veritas Kapital Assurance, which lost 5.45 percent. The mixed performance of stocks reflects the cautious approach of investors as they navigate the new interest rate environment.
The 31 Nigerian companies included in FTSE Russell's Frontier Index Series also recorded a mixed session, with 11 stocks gaining, six declining and 14 closing unchanged. NAHCO led the FTSE Russell basket gainers with a 7.69 percent gain, followed by NASCON at 4.20 percent and Zenith Bank at 2.27 percent. First HoldCo and Access Holdings also recorded gains of 1.35 percent and 1.16 percent, respectively.
The FTSE Russell constituents' performance signals that Wednesday's strength was concentrated in selected companies rather than representing a broad-based move across the newly eligible universe. United Capital led the downside, falling 5 percent, while Dangote Sugar declined 0.70 percent and Wema Bank and Fidelity Bank lost 0.62 percent and 0.25 percent, respectively.
Key points
- The NGX All-Share Index rose 0.23 percent to 251,191.02 points.
- The Central Bank of Nigeria reduced the Monetary Policy Rate by 350 basis points to 23.00 percent.
- 43 stocks advanced against 20 decliners at the broader market level.
