Blue-chip Firms Lose N3.7 Trillion Amid CBN Policy Shift

Last week, the market value of BUA Foods Plc, MTN Nigeria Communications Plc, and 11 other blue-chip firms on the Nigerian Exchange Limited (NGX) plummeted by N3.7 trillion, marking one of the worst performances in recent history. The NGX's market capitalization fell by 1.19% from N158.513 trillion to N156.624 trillion.

The NGX All-Share Index declined by 1.2%, or 2,954.40 basis points, closing at 242,619.20 basis points. Analysts attributed this decline to a new policy from the Central Bank of Nigeria (CBN) that allows individuals to trade in Open Market Operations (OMO) and the anticipated revised NGX pricing methodology.

This policy shift has led investors to favor low-risk investments with guaranteed returns. In the review week, BUA Foods Plc experienced an 11.1% drop in share price, leading to a market value loss of N1.52 trillion.

MTN Nigeria's stock fell by 4.97%, resulting in a market value decrease of N839.8 billion, while HBM Nigeria's market value dropped by 7.8%. First Holdco Plc and Unilever Nigeria Plc also saw significant declines in market value.