By Peter Egwuatu
The Nigerian stock market extended its bullish run last week, following the reduction in inflation rate and further expectation of a cut in the Monetary Policy Rate, MPR by the Central Bank of Nigeria, CBN.
The Inflation rate for September 2025 dropped to 18.02% from 22.12% in August, according to the National Bureau of Statistics, NBS, just as MPR, benchmark interest rate was reduced to 27% from 27.5 % in August by the CBN.
Analysts are predicting further reduction in MPR in the next policy meeting by the CBN.
Meanwhile, analysis of the performance of the stock market last week showed that investors gained N1.265 trillion as the Nigerian Exchange Limited, NGX market capitalisation closed on Friday at N94.561 trillion from N93.296 trillion the previous week.
Similarly, another stock market performance indicator, NGX All Share Index, ASI grew higher by 1.4% to close at 148,977.64 points against 146,988.04 points recorded the previous week.
The upbeat performance according to analysts comes at a time of cautious optimism in the market, with investors positioning ahead of third-quarter 2025, Q3’ 25 earnings releases and broader macroeconomic developments.
Analysts noted that the positive reaction to the September inflation report, also reinforced expectations for a potential rate cut at the next policy meeting.
Further analysis of trading last week showed that Dangote Cement appreciated by 4.4%, BUA Foods up by 3.2%, STANBIC IBTC garnered 8.3% and WAPCO 4.3%. The Month-to-Date, MtD and Year-to-Date, YtD returns improved to 4.4% and 44.7%, respectively. That said, market activity was mixed, with trading volume increasing by 5.9% Week on Week, W/W, while trading value declined by 15.5% W/W. Across sectors, performance was broadly positive as the Industrial Goods Index up 2.8%, Insurance Index 2.6%, and Consumer Goods Index 1.9%, while the Banking Index declined by -0.1% and the Oil & Gas Index remained unchanged.
Commenting on market outlook, analysts at Cordros Research stated: “ Next week, sentiment is expected to remain cautiously positive, supported by expectations of solid third-quarter earnings as a fresh wave of corporate results rolls in. Key releases on the radar include WAPCO and the brewers, International Breweries, Nigerian Breweries, and Guinness Nigeria”.
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