MTN listing spurs buying interest as indices rise by 0.08 per cent
The reversal was occasioned by the listing of 20.35 billion ordinary shares of MTN Nigeria Communications Plc by way of introduction at N90 each on Thursday.
The listing rekindled buying interest among investors, as reflected on the volume traded for the day and Friday, as the market capitalisation of the NSE soared by N1.9 trillion, or 10 per cent, to end the recent bear-run.
Consequently, at the close of transactions last week, the NSE All-Share Index (ASI) and market capitalisation appreciated by 0.08 per cent and 17.29 per cent to close the week at 28,871.93 points and N12.717 trillion respectively.
However, all other indices finished lower with the exception of the ASI and NSE Premium Index that appreciated by 0.08 per cent and 3.60 per cent respectively, while the ASeM Index closed flat.
On the outlook of the market, the Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion, urged investors to trade cautiously as the weak market fundamentals in the form of dwindling confidence and the prevailing low liquidity remain unchanged.
“We expect that the government’s disbursement and implementation style in 2019 and beyond will change for good so as to drive the economy,” he said.
Further breakdown of last week’s transactions showed that a total turnover of 1.172 billion shares worth N17.887 billion were recorded in 18,380 deals by investors on the floor of the exchange.
This amount traded, was however, higher than 1.477 billion units, valued at N10.876 billion that changed hands in 20,740 deals during the preceding week.
Again, the financial services industry dominated in volume terms with 680.592 million shares valued at N7.395 billion traded in 11,035 deals, thus contributing 58.09 per cent the total equity turnover.
The conglomerates industry followed with 266.636 million shares worth N818.249 million in 1,152 deals. The ICT industry ranked third with a turnover of 82.390 million shares worth N6.085 billion in 346 deals.
Trading in the top three equities namely, Transnational Corporation of Nigeria Plc, Access Bank Nigeria Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 421.064 million shares worth N4.681 billion in 3,073 deals, contributing 35.94 per cent to the total equity turnover.
A total of 18,181 units of Exchange Traded Products (ETPs) valued at N215,365.64, was executed in four deals, compared with 97,154 units valued at N1.318 million, transacted last week in two deals.
Similarly, 10,366 units of Federal government bonds valued at N9,783 million were traded this week in 9 deals compared with a total of 265 units valued at N281,654.91 transacted last week in 5 deals.
Also, 16 equities appreciated in price during the week, lower than 18 in the previous week. 42 equities depreciated in price, lower than 49 equities of the previous week, while 109 equities remained unchanged, higher than 101 equities recorded in the preceding week.