NGX All-Share Index up 0.92% for third week amid CBN rate cut-driven equity rally
The NGX All-Share Index rose 0.92% to 252,113.41 points on Friday, September 25, marking three consecutive weeks of gains and pushing year-to-date returns to +62.01% as market capitalisation increased by N1.498 trillion to N163.655 trillion.
This rally was fueled by the Central Bank of Nigeria's 350-basis-point cut to the monetary policy rate on September 22, which lowered Treasury Bill yields and made equities more attractive. Oil & gas and banking stocks led advances, with Seplat Energy up 7.3%, GTCO rising 5.4% and Zenith Bank gaining 5.1%. Critical Minerals Financing Corp was the top weekly gainer, jumping 59.80% to N3.26.
Trading volume surged 45% to 4.689 billion shares worth N240.824 billion, driven by the Financial Services sector. While the Insurance sector declined 0.84%, all other major indices finished higher.
Analysts anticipate continued rotation into equities as the rate cut reduces the opportunity cost of stock holdings, with focus on inflation and exchange-rate stability ahead of the 9M-26 earnings season.
With fixed-income yields falling, will you increase your equity exposure now or wait for additional confirmation of this trend before adjusting your investment strategy?