Selloff in MTNN, 17 stocks drag capitalisation further by N418 billion

Following heavy price losses suffered by many blue-chips, especially MTN Nigeria (MTNN) and 17 stocks, transactions on the equities sector of the Nigerian Exchange Limited (NGX) continued on a downturn yesterday, as market capitalisation declined by N418 billion.

The All-Share Index declined by 766.56 per cent, representing a decline of 1.48 per cent, to close at 51,127.38 points. Similarly, the overall market capitalisation value lost N418 billion to close at N27.850 trillion.

The market negative performance was driven by price depreciation in large and medium capitalised stocks, which are; MTNN, Transcorp Hotels, Africa Prudential, FBN Holdings (FBNH) and Wema Bank.

This week, United Capital Plc, said: “we expect mostly bearish sentiments in the market, supported by the illiquidity of the financial system.

“We note that the current bear trend is approaching a turning point, as the Q1, 2023 earnings season draw nearer. We anticipate the broad-based return of investors’ risk-on sentiments, which is to be catalysed by declining yields in the fixed-income market.

“The current low prices and valuations will allow ‘Buy-Side ‘investors the opportunity to re-enter the market and take positions in fundamentally sound stocks, thus maximising market returns.”

Further, the market breadth was negative as 18 stocks lost relative to 16 gainers. Ikeja Hotel recorded the highest price gain of 9.48 per cent to close at N1.27, per share. Transcorp followed with a gain of 9.47 per cent to close at N1.85 and Consolidated Hallmark Insurance up by 8.77 per cent to close at 62 kobo.

Nigerian Exchange Group rose by 8.16 per cent to close at N26.50, while Jaiz Bank gained 5.68 per cent to close at 98 kobo, per share. PZ Cussons appreciated by 5.00 per cent to close at N11.55 kobo. United Bank for Africa (UBA) increased by 3.95 per cent to close at N7.90 kobo. Nigerian Aviation Handling Company (NAHCO) rose by 3.77 per cent to close at N11. Japaul Gold increased by 3.70 per cent to close at 28 kobo. Mansard garnered 3.64 per cent to close at N2.28 kobo. International Breweries also advanced by 3.33 per cent to close at N4.65 kobo.

On the other hand, International Energy Insurance led the losers’ chart by 6.98 per cent to close at N1.20, per share. MTNN followed with a decline of 6.67 per cent to close at N224.00, while Transcorp Hotels lost 5.80 per cent to close at N6.50 kobo.

Africa Prudential declined 5.45 per cent to close at N5.20, while AIICO Insurance shed 5.08 per cent to close at 56 kobo. Cutix dropped 3.91 per cent to close at N2.21 kobo. Wema Bank shed 3.68 per cent to close at N3.66 kobo. Neimeth depreciated by 3.08 per cent to close at 1.26 kobo. UPDC REIT declined by 3.03 per cent to close at N3.20 kobo. Livestock shed 2.08 per cent to close at 94 kobo.

The total volume traded fell by 58.19 per cent to 226.594 million units, valued at N1.568 billion, and exchanged in 4,373 deals. Transactions in the shares of Transcorp topped the activity chart with 107.213 million shares valued at N162.832 million.

Fidelity Bank followed with 39.308 million shares worth N206.008 million, while UBA traded 22.603 million shares valued at N190.356 million. Zenith Bank traded 20.614 million shares valued at N521.286 million, while FCMB Group transacted 12.611 million shares worth N47.830 million.