Profit-taking in major Tier-1 banking stocks interrupted the upward trajectory of the Nigerian stock market, as investors repositioned portfolios ahead of the upcoming Monetary Policy Committee (MPC) decision on interest rates.
Heavyweight banking names including Zenith Bank, United Bank for Africa (UBA), and Access Holdings Plc led the retreat, weighing on overall market performance during Tuesday’s trading session.
Market Performance Overview
Data from the Nigerian Exchange showed that the All-Share Index (ASI) declined by 0.47 percent to close at 189,321.24 basis points. The downward movement was primarily driven by selloffs in key large-cap stocks such as:
- ZENITHBANK (-10.00%)
- UBA (-6.56%)
- ACCESSCORP (-4.63%)
- WAPCO (-4.04%)
- MTNN (-3.81%)
Despite the losses, gains in select equities provided partial support. Stocks such as VITAFOAM (+8.26%), BUAFOODS (+5.77%), PRESCO (+3.03%), NAHCO (+2.55%), and NESTLE (+2.47%) recorded positive price movements.
Liquidity and Turnover
Market activity remained robust, with total turnover reaching ₦60.19 billion. A total of 1.19 billion shares were traded across 86,607 deals, underscoring sustained liquidity levels and ongoing institutional participation.
Month-to-date returns closed at +14.48 percent, while year-to-date performance stood at +21.66 percent, highlighting the market’s resilience despite short-term corrections.
Volume and Value Leaders
In terms of trading volume:
- ACCESSCORP recorded 86.72 million shares
- ZENITHBANK traded 93.10 million shares
- JAPAULGOLD posted 73.79 million shares
- FIRSTHOLDCO saw 54.32 million shares exchanged
By value traded:
- ZENITHBANK led with ₦8.00 billion
- ARADEL followed with ₦5.59 billion
- MTNN recorded ₦5.05 billion
- VITAFOAM posted ₦4.55 billion
Pension Fund Influence and Market Outlook
Market analysts attribute the broader rally seen in recent weeks to increased participation from pension fund administrators. The National Pension Commission’s revision of investment limits for RSA Funds I, II, III, and VI-Active has allowed greater allocation to equities, supporting market sentiment.
Stockbrokers anticipate cautious trading in the immediate term as investors assess macroeconomic signals and await the MPC’s interest rate decision. However, corporate action announcements and improved liquidity are expected to underpin bullish sentiment.
Fixed Income Market Update
System liquidity moderated but remained relatively strong, closing at an estimated net long position of ₦3.39 trillion, compared to ₦4.68 trillion the previous day.
The moderation was partly linked to the latest Open Market Operations (OMO) auction, which absorbed approximately ₦1.35 trillion from the financial system. As a result, the overnight funding rate edged up by 1 basis point to 22.80 percent, while the Open Repo Rate (OPR) remained steady at 22.50 percent.
In the Treasury Bills secondary market, average benchmark yields declined by 4 basis points to 17.54 percent, driven by renewed demand for the 352-day instrument. Similarly, the OMO secondary market closed bullish, with average yields easing by 1 basis point to 20.58 percent.
The recent pullback in equities, analysts note, may present entry opportunities for investors targeting fundamentally strong stocks amid sustained macroeconomic adjustments.
 decision on interest rates.){kind=link}