CBN's failure to hold policy meeting hits Nigerian stock market, dips by N330bn in 2 days

shakirudeen taiwo

January 24, 2018 7:16 PM

Rescinding investors' confidence and profit taking activities are noted for this fall in the capital market.

The first casualty of the Central Bank of Nigeria’s (CBN) failure to hold its statutory Monetary Policy Committee (MPC) meeting is the Nigerian Stock Exchange (NSE) as the market lost N330 billion in two trading days.

According to the market reports for Wednesday, January 24, 2017, the All Share Index (ASI) of the market dipped by 0.96 percent (91.32 basis points). The ASI close at 43,963.40 points while the market capitalisation was also down to N15.769 trillion.

For the two days (January 23 and 24), the capital market has lost 2% (N330 billion) of its value.

Losses recorded by high capitalised stocks on the exchange also affected the market performance. Dangote Cement, Mobil, Julius Berger, Zenith Bank and First Bank Holdings Nigeria were among top losers.

Analysts and market dealers hinted that the market is just undergoing a correction mode. And it is expected to return to its gaining ways soon.

Aside the profit-taking activities, market activities were also affected by the failure of the country’s apex bank to hold its major policy meeting. The Senate has refused to confirm the appointment of deputy governor appointee (Mrs Aisha Ahmed) and six new members of the MPC.

According to a resolution by the Senate, all appointments by the Executive will not be confirmed unless Mr Ibrahim Magu is removed as EFCC Chairman.

As a result, the needed number could not be met to form a quorum (6 of 12 members).