Stock Market Reacts to Slowdown in Inflation, Gains N705bn

Kayode Tokede 

The local stock market yesterday reacted to a slowdown  in inflation, appreciated by N705billion on investors’ demand for BUA Foods Plc, Guaranty Trust Holding Company Plc (GTCO)  and 29 others. 

The National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) report announced 20.21 per cent inflation rate in August 2025 from 21.88 per cent declared in July 2025.

As the stock price of BUA Foods and GTCO advanced by 6.73 per cent and 1.29 per cent, respectively, the Nigerian Exchange Limited All-Share Index (NGX ASI) appreciated by 1,113.31 basis points or 0.79 per cent, to close at 141,659.00 basis  points.

Similarly, the overall market capitalisation value gained N705 billion to close at N 89.627 trillion.

Sectoral performance was mixed as the NGX Consumer Goods index (+3.5per cent) and NGX Banking index (+0.1per cent) advanced, while the NGX Insurance index(-0.2per cent) and NGX Oil & Gas index   (-one per cent) closed lower. The NGX Industrial Goods index remained unchanged.

Investor sentiment, as measured by market breadth closed positive as 32 stocks advanced, while 30 declined. Living Trust Mortgage Bank recorded the highest price gain of 9.96 per cent to close at N5.08, per share. eTranzact International followed with a gain of 9.70 per cent to close at N16.40, while Regency Alliance Insurance rose by 9.64 per cent to close at N1.82, per share.

NNFM appreciated by 8.62 per cent to close at N93.90, while Unilever Nigeria rose by 8.41 per cent to close at N72.80, per share.

On the other hand, McNichols led the losers’ chart by 9.90 per cent to close at N3.55, per share. Honeywell Flour Mills followed with a decline of 9.13 per cent to close at N20.90, while UACN declined by 8.01 per cent to close at N67.15, per share.

Omatek Ventures lost 7.58 per cent to close at N1.22, while Champion Breweries depreciated by 6.00 per cent to close at N15.98, per share.

The total volume traded rose by 27.69 per cent to 555.123 million units, valued at N24.082 billion, and exchanged in 31,578 deals. Transactions in the shares of UACN topped the activity chart with 67.170 million shares valued at N4.495 billion. Regency Alliance Insurance followed with 57.234 million shares worth N98.102 million, while Access Holdings traded 37.696 million shares valued at N1.019 billion.

Lasaco Assurance traded 32.782 million shares valued at N98.446 million, while Chams Holding Company transacted 32.596 million shares worth N115.614 million.

On this week market performance, Imperial Asset Managers Limited said, “we expect the equity market to trade with a cautious-bullish bias. Sustained investors’ interest in bellwether, undervalued, and speculative stocks and improved market liquidity could extend the positive momentum. However, macroeconomic data expectations on Inflation numbers for August 2025, Yield direction for September 2025 Bonds’ PMA, MPC September 2025 meeting, and Q2, 2025 GDP report will elicit mixed reactions from players.  

“Given the above scenarios, we continue to advise that investors maintain a cautious stance and continue to priorities stocks with strong fundamentals, healthy balance sheets, and resilient earnings potential.”