Equities market depreciates by N392bn as investors sell-off MTN Nigeria, 48others

Nigerian equities market on Monday opened the week on decline as investors’ investments went down by N392 billion, propelled by the loss in MTN Nigeria Communications (MTNN) Plc and 48 others.

The NGX All-Share Index (ASI) lost 718.87 basis points or 1.10 per cent to close at 64,337.52 bassis points. Also, market capitalisation declined by N392 billion to close at N35.011 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; MTNN, Guinness Nigeria, NASCON Allied Industries, Dangote Sugar Refinery and Eterna.

As measured by market breadth, market sentiment was negative, as 19 stocks gained relative to 49 losers. Beta Glass, SUNU Assurance, Linkage Assurance and AXA Mansard Insurance emerged the highest price gainer of 10 per cent each to close at N38.50, 66 kobo, 77 kobo and N3.74 respectively, per share.

Berger Paints followed with a gain of 9.95 per cent to close at N11.05, while Skyway Aviation Handling Company advanced by 9.87 per cent to close at N25.60, per share.

On the other side, Dangote Sugar Refinery, Ecobank Transnational Incorporated (ETI), Livestock Feeds, NPF Microfinance Bank, Sovereign Trust Insurance and Caverton Offshore Support Group led others on the losers’ chart with 10 per cent each to close at N27.00, N15.30, N1.89, N1.80, 63 kobo and N1.17 respectively, per share. Guinness Nigeria followed with a decline of 9.98 per cent to close at N59.95, while PZ Cussons Nigeria shed 9.92 per cent to close at N16.35, per share.

The total volume of trades increased by 46.47 per cent to 673.425 million units, valued at N6.474 billion, and exchanged in 9,788 deals. Transactions in the shares of Abbey Morgage Bank led the activity with 112.260 million shares worth N112.274 million. Fidelity Bank followed with account of 58.588 million shares valued at N503.708 million, while Union Bank of Nigeria (UBN) traded 51.080 million shares valued at N357.551 million.

FCMB Group traded 49.364 million shares worth N323.679 million, while Universal Insurance traded 47.506 million shares worth N11.232 million.

This week, analysts at United Capital Plc stated that “we expect the bullish sentiments in the equities market to persist on the back of the attractiveness of the market over the depressed rates in the fixed-income market.

“Also, we believe the positive sentiments around the new policies to continue to drive the rally in the market. Lastly, we expect the commencement of the Q2, 2023 earnings season to play an important role in the market’s direction.”