Stock Market Sheds N2.1tn as Investors React to CBN’s Revised Open Market Operation Framework
*Equities sustain eight-day losing streak as investors take profit Kayode Tokede The Nigerian stock market lost about N2.1 trillion in market capitalisation last week as investors reacted to the Central
The Nigerian stock market experienced a significant decline of approximately N2.1 trillion in market capitalization last week, as investors reacted to the Central Bank of Nigeria's revised Open Market Operations (OMO) framework, which now allows participation from individuals, corporations, and non-bank financial institutions. The Nigerian Exchange Limited (NGX) market capitalization, which opened at N156.624 trillion, closed at N154.534 trillion, a decline of 1.33 per cent.
The NGX All-Share Index (ASI) also fell by 3,268.04 points, or 1.35 per cent, from 242,619.20 points to 239,351.16 points. The declines were attributed to profit-taking in major stocks like Aradel Holdings, MTN Nigeria, Zenith Bank, and First HoldCo. The Central Bank's decision to broaden access to the OMO market could increase competition between equities and high-yielding fixed-income instruments, potentially diverting funds from equities to the fixed-income market.
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