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 Bank of Nigeria’s (CBN) revised Open Market Operations (OMO) framework, which opened participation in the market to individuals, corporates and non-bank financial institutions.

Specifically, the market capitalisation of the Nigerian Exchange Limited (NGX), which opened the week at N156.624 trillion, declined by N2.09 trillion, or 1.33 per cent, to close at N154.534 trillion.Similarly, the NGX All-Share Index (ASI) fell by 3,268.04 points, or 1.35 per cent, from 242,619.20 points at the beginning of the week to 239,351.16 points at the close of trading.

The bearish performance was driven largely by profit-taking in some highly capitalised stocks, including Aradel Holdings Plc, MTN Nigeria Communications Plc, Zenith Bank Plc and First HoldCo Plc.Aradel Holdings declined by 9.99 per cent week-on-week to close at N1,374.20 per share, while MTN Nigeria fell by 3.2 per cent to N779 per share.