"Nigeria opens today with a more favourable macro backdrop after the CBN's first rate cut since 2020. The bank trimmed the MPR by 50 bps to 27% and lowered banks' CRR to 45%, leaning into a multi-month disinflation run after August CPI eased to 20.12% YoY. Equities could find support if the central bank continues to lower rates, which could help the market return to the upside and extend its previous gains."
"Yesterday, the NSE All-Share Index slipped 0.40% to 140,930, as caution dominated the market ahead of a policy change and after weeks of consolidation. Banks saw mixed performances, with Zenith Bank rising while Wema Bank declined. Other notable decliners included Dangote Sugar, Lafarge Africa, NSL TECH, and Access Holdings. On the upside were Thomas Wyatt, Chellarams, RT Briscoe, and Custodian."
CBN implemented its first policy rate cut since 2020, trimming the MPR by 50 basis points to 27% and lowering banks' CRR to 45%. August CPI eased to 20.12% year-on-year, signaling a multi-month disinflation run. Continued rate reductions could support equities, helping the market regain upward momentum and extend prior gains. The NSE All-Share Index fell 0.40% to 140,930 amid caution before the policy change and after consolidation. Banking stocks recorded mixed results, with Zenith Bank up and Wema Bank down, while notable decliners and gainers were listed. Upcoming PMI and inflation releases could clarify economic direction and underpin stock prices.
Read at London Business News | Londonlovesbusiness.com
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