OMO Policy: Market Value of Blue-chip Firms Plumet by N3.7trn
Kayode Tokede The market value of BUA Foos Plc, MTN Nigeria Communications Plc and 11 other blue-chip firms on the Nigerian Exchange Limited (NGX) decreased by N3.7 trillion last week, the
The market value of BUA Foods Plc, MTN Nigeria Communications Plc, and 11 other prominent firms on the Nigerian Exchange Limited (NGX) dropped by N3.7 trillion in the previous week, marking the steepest decline in recent history. This significant downturn caused the market capitalisation of the NGX to decrease by 1.19 percent, falling from N158.513 trillion to N156.624 trillion in a week-on-week (WoW) performance.
The NGX All-Share Index, which reflects the overall market movement, also saw a decline of 1.2 percent or 2,954 basis points WoW, closing at 242,619.20 basis points. Capital market analysts pointed to the new Central Bank of Nigeria (CBN) policy permitting individuals to participate in Open Market Operations (OMO) and an upcoming revised NGX pricing methodology, set to begin on a specific date.
Following this policy change, investors have increasingly moved their funds into OMO bills, which offer very low-risk, high-guaranteed returns. BUA Foods Plc, MTN Nigeria Communications Plc, and HBM Nigeria Plc experienced the most substantial share price declines during this period. BUA Foods Plc's shares dropped by 11.1 percent or N84.50 per share, resulting in a N1.52 trillion reduction in the company's market value.
MTN Nigeria Communications' shares fell by 4.97 percent or N40.00 per share, leading to a N839.8 billion decrease in market value. HBM Nigeria's stock value decreased by 7.8 percent or N26.00 WoW. First Holdco Plc and Unilever Nigeria Plc also saw reductions in market value, with declines of 3.9 percent and 23.4 percent, respectively.
The CBN conducted an OMO auction that week, receiving N4.93 trillion in subscriptions for N600 billion in available bills. Despite the auction's substantial participation, the bank allocated N2.60 trillion, far exceeding its initial offer. This high demand for OMO auctions throughout 2026 indicates a persistent preference for OMO yields over other fixed-income options.
As more individuals gain access to OMO bills through banks, this increased demand may lead to a gradual convergence between Treasury Bill and OMO yields, narrowing the current 400-basis-point gap.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
