Negative sentiments persist as losses drag index further by 0.5%

Bearish sentiments persisted on the equities sector of the Nigerian Exchange limited (NGX) yesterday as losses in MTN Nigeria Communications (MTNN), 33 stocks dragged the All-Share Index (ASI) further by 0.5 per cent.

Investors’ sentiments towards the equities market have continued to diminish following the Monetary Policy Rate (MPR) hike by the MPC at its recently concluded meeting.

Specifically, at the close of transactions yesterday, the All Share Index (ASI) decreased by 253.82 absolute points, representing a dip of 0.50 per cent to close at 50,188.55 points. Similarly, the market capitalisation lost N137 billion to close at N27.065 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communications (MTNN), Chemical Allied Products (CAP), Ardova, United Capital and Guaranty Trust Holding Company (GTCO).

Analysts at United Capital Plc predicted an extended sell pressure across stocks in the local bourse as investors continue to switch assets, considering the climbing interest rate environment.

“However, we maintain that investors and fund managers will continue to cherry-pick stocks with good fundamentals, as the H1, 2022 earnings season has already commenced,” it stated.

Vetiva Dealing and Brokerage said: “We have started to see some counters fall below their year-open prices, as bearish sentiments continue to weigh on the market. We are likely to see another bearish session tomorrow with few gainers amid slight improvement in market breadth.

Market breadth, which is measured by market sentiment, remained negative, as three stocks gained relative to 34 losers. FCMB Group recorded the highest price gain of 3.33 per cent to close at N3.10 kobo. National Salt Company of Nigeria (NASCON) Allied Industries followed with a gain of 91 per cent to close at N11.10 kobo while Nigerian Breweries appreciated by 0.42 per cent to close at N47.50 kobo.

On the other hand, Custodian Investment, Prestige Assurance and Jaiz Bank led the losers’ chart with 10 per cent each to close at N6.30, 36 kobo and 72 kobo respectively. Meyer Plc followed with a decline of 9.92 per cent to close at N2.27 kobo, while Cutix Plc went down by 9.78 to close at N2.03 kobo.

The total volume traded rose by 431.17 per cent to 829.511 million units, valued at N4.105 billion, and exchanged in 4,977 deals.

Transactions in the shares of International Energy Insurance topped the activity chart with 637.105 million shares valued at N1.019 billion. Transnational Corporation of Nigeria (Transcorp) followed with 23.272 million shares worth N23.209 million, while GTCO traded 15.701 million shares valued at N313.150 million.

United Bank for Africa (UBA) traded 13.204 million shares valued at N92.255 million, while FBN Holdings (FBNH) transacted 12.679 million shares worth N138.117 million.