The Nigerian equities market experienced a sell-off on Wednesday as investors reacted to the Central Bank of Nigeria's (CBN) decision to raise its benchmark interest rate. After the Monetary Policy Committee (MPC) meeting held on Tuesday, the CBN increased the Monetary Policy Rate (MPR) by 25 basis points to 18.75 percent. This move had an immediate impact on the stock market, with some key companies witnessing significant declines in share prices.

Shares of Unilever Nigeria Plc, Cadbury, Multiverse Mining and Exploration, and Champion Breweries were among the hardest hit during the trading session. The market's benchmark performance indicators, the Nigerian Exchange Limited (NGX) All-Share Index, and equities market capitalization, recorded their first decrease for the week, falling by 0.46 percent or N185 billion. The market closed with the All-Share Index at 65,687.16 points and the market capitalization at N35.745 trillion, down from the previous day's highs of 65,991 points and N35.930 trillion, respectively.

The trading session saw active participation from investors, with UBA, Access Corporation, Universal Insurance, FBN Holdings, and Zenith Bank emerging as the most traded stocks. In total, investors exchanged 500,430,016 shares in 7,345 deals, valued at N7.143 billion.

Among the companies affected, Cadbury experienced a notable decline, dropping from N17 to N15.30, losing N1.70 or 10 percent of its day-open price. Unilever's share price also suffered, falling from N17.50 to N15.75, down by N1.75 or 10 percent. Multiverse Mining and Exploration witnessed a decrease from N3.01 to N2.71, losing 30 kobo or 9.97 percent, while Champion Breweries moved down from N3.76 to N3.48, shedding 28 kobo or 7.45 percent.

The CBN's decision to raise the MPR was part of its efforts to address inflationary pressures and stabilize the economy. While this move aims to restore price stability and improve investor confidence, it also had a direct impact on the equities market, leading to cautious behavior among investors and triggering the sell-off.

Market analysts expect that the higher monetary policy rate may continue to influence investors' decisions in the coming days, and there might be adjustments in various sectors as businesses and investors adapt to the new interest rate environment.