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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.
Attention may turn to the next date releases, including the PMI data and inflation data, which could provide a clearer picture of the economy’s direction. More favourable conditions could help create a floor for stock prices and a return to the upside for the main index.
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