Stock Market Plummets by N1.17trn on Renewed Profit-taking in MTN, Others

Kayode Tokede 

The stock market closed the trading session on a negative note, as losses in MTN Nigeria Communications (MTNN) Plc and 25 others caused the overall capitalization to close lower by N1.17 trillion.

About 4.73 per cent drop in  MTN Nigeria shares,  4.11 per cent depreciation in Dangote Sugar Refinery Plc and  1.41 per cent downward movement in First Holdco Plc influenced the market capitalisation decline. 

As a result, the Nigerian Exchange Limited All-Share Index (NGX ASI) declined by 1,806.18 basis points or 0.73 per cent, to close at 246,723.57 basis points from 248,529.75 basis points it opened for trading, while the market’s year-to-date (YTD) return moderated to 58.55per ent, from 59.71per cent in the previous session. 

Similarly, the overall market capitalisation value shed N1.17 trillion to close at N159.256 trillion from  N160.422 trillion it closed for trading the previous day. Y

Sectoral performance was mixed, as the NGX Consumer Goods (-per cent per cent) and NGX Banking (-0.5per cent) indices declined while the NGX  Insurance Index (+0.2per cent) index advanced. The NGX Industrial Goods and Oil & Gas indices closed flat.

As measured by market breadth, market sentiment was positive, as 27 stocks gained relative to 26 losers. FTN Cocoa recorded the highest price gain of 9.88 per cent to close at N8.90, per share. C&I Leasing followed with a gain of 8.26 per cent to close at N5.90, while Sovereign Trust Insurance up by 6.74 per cent to close at N1.90, per share.

Regency Alliance Insurance appreciated by 6.33 per cent to close at 84 kobo, while Universal Insurance rose by 6.02 per cent to close at 88 kobo, per share.

On the other hand, Thomas Wyatt Nigeria led the losers’ chart by 9.97 per cent to close at N2.89, per share. AVA Capital followed with a decline of 9.60 per cent to close at N8.95, while International Energy Insurance declined by 6.32 per cent to close at N4.00, per share.

International Breweries down by 5.98 per cent to close at N11.00, while Guinea Insurance declined by 5.13 per cent to close at 74 kobo, per share. 

The total volume traded advanced by 270.4 per cent to 3.91 billion units, valued at N32.38 billion, and exchanged in 45,608 deals. Transactions in the shares of Fortis Global Insurance topped the activity chart with 3.292 billion shares valued at N9.575 billion. Trans-Nationwide Express followed with 84.584 million shares worth N181.903 million, while Access Holdings traded 66.125 million shares valued at N1.869 billion.

Consolidated Hallmark Holdings 54.338 million shares valued at N379.420 million, while Fidelity Bank transacted 46.855 million shares worth N1.020 billion.

Looking ahead, Cowry Assets Management Limited said, “the market is expected to gradually moderate into a bullish trend as investor sentiment continues to improve. However, persistent profit-taking activities may limit the pace of recovery and keep the market volatile in the near term.”

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