Nigeria’s equities market decreased further on Tuesday by 0.30 percent as the Central Bank of Nigeria (CBN) recent directive to banks on their dividend payments, bonuses and investment in foreign subsidiaries expectedly continues to rattle the market.
The CBN recently directed banks to temporarily suspend the payment of dividends to shareholders, defer the payment of bonuses to directors and senior management staff.
The CBN in its June 13, 2025 circular titled “Letter to All Banks: Temporary Suspension of Dividend Payments, Bonuses and Investment in Foreign Subsidiaries” also asked them refrain from making investments in foreign subsidiaries or embarking on new offshore ventures.
Read also: Here’re analysts views on CBN’s suspension of banks dividend, bonuses
The Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation decreased from preceding trading day’s highs of 115,258.77 points and N72.680 trillion to 114,910.16 points and
N72.497 trillion.
Banking stocks led by Zenith Bank, GTCO, UBA, Access Holdings and Ecobank Transnational Incorporated were highly traded on Tuesday as investors in 23,170 deals exchanged 787,305,500 shares worth N25.666 billion.
In their view on what will shape the market on Wednesday trading session, Lagos-based Vetiva Research analysts said they expect continued softness in banking tickers, “especially among names flagged for negative cash profit trajectories”.
“We anticipate investor rotation toward names with clear dividend visibility, such as GTCO. Also, watch for technical rebounds in oversold banks (example, UBA, now down ~13 percent month to date (MTD), but any bounce will likely be met with cautious profit-taking,” Vetiva Research analysts further said.
“Sentiment remains fragile, and price action will reflect a mix of fundamentals and positioning amid ongoing regulatory headwinds”, they added.
