MTNN, Guinness, Lafarge lead NGX N83 billion loss

The stock market extended losses to the second trading session in April as most highly capitalised stocks, especially MTN Nigeria Communications (MTNN) and Guinness Nigeria depreciated, yesterday, causing market capitalisation to slump further by N8 billion.

In summary, the all-share index (ASI) declined by 155.01 absolute points, representing a decrease of 0.33 per cent to close at 46,687.85 points. Similarly, the overall market capitalization value lost N83 billion to close at N25.17 trillion.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are MTN Nigeria Communications (MTNN), Guinness Nigeria, Lafarge Africa, PZ Cussons Nigeria and FBN Holdings.

This week, analysts at United Capital Plc said: “We expect the equities market to remain relatively lull as investors continue to take profits off the table, especially in the absence of any expected positive trigger.

“However, we note that the market is approaching oversold territory, which could spark some short-term bargain hunting. We retain a preference for investors to continue to seek selling opportunities to reduce exposure to the domestic equities market.”

Analysts at Vetiva Dealing and Brokerage said: “As expected, the market started mixed with a slight recovery in market sentiment, as investors continue to trade in line with the earnings report. We anticipate further mixed sessions amid bargain hunting activities across the board.”

However, market breadth closed positive as 22 stocks gained while 19 others declined.

On the price movement chart, Regency Alliance Insurance led the losers’ chart, shedding 9.68 per cent to close at 28 kobo. Japaul Gold and Ventures followed with a decline of 8.82 per cent to close at 31 kobo while Wapic Insurance dropped 6.82 per cent to close at 41 kobo. Linkage Assurance declined by six per cent to close at 47 kobo. Jaiz Bank also depreciated by 5.71 per cent to close at 66 kobo.

However, Red Star Express recorded the highest price gain of 10 per cent to close at N2.97 kobo. Nigerian Aviation Handling Company (NAHCO) followed with a gain of 9.79 per cent to close at N4.71 kobo. Meyer Plc gained 9.72 per cent to close at 79 kobo.

Veritas Kapital Assurance appreciated by 9.52 per cent to close at 23 kobo while UACN Property Development Company (UPDC) gained 9.21 per cent to close at 83 kobo.

Also, the total volume of trades declined by 14.7 per cent to 219.5 million units, valued at N1.9 billion, and exchanged in 5,168 deals. Transactions in the shares of Transnational Corporation of Nigeria topped the activity chart with 28.9 million shares valued at N28.5 million.

Fidelity Bank followed with 23.5 million shares worth N79.9 million while United Bank for Africa (UBA) traded 15.1 million shares valued at N113.7 million.

Zenith Bank traded 12.6 million shares valued at N278.4 million while Access Holdings transacted 11.9 million shares worth N116.2 million.