Stock market reverses gains as capitalisation dips by N176 billion

The Nigerian equities market reversed gains, to close on a downturn yesterday, as market capitalisation declined by N176 billion, amid losses in MTN Nigeria (MTNN) and 13 stocks.

At the close of trading yesterday on the Nigerian Exchange Limited (NGX), the All-Share Index (ASI) that measures the performance of listed equities depreciated by 306.48 basis points to 96203.65 points from 96510.13 points the previous day. Also, the market capitalisation of listed equities declined by 0.32 per cent to N55.261 trillion from N55.437 trillion it closed on Tuesday.

On what will shape the market in the next trading session, analysts at Vetiva Dealings and Brokerage, said: “Without the downturn in MTNN, the market would have ended the day in the green, as there are clear pockets of optimism across the market. That said, we are cautiously optimistic that the market will trade positively in tomorrow’s session, barring an unforeseen downturn in a large-cap counter.”

SCM Capital said: “We foresee a mixed trading week and advise investors to invest in high-quality stocks with strong fundamentals backing them.”On the price movement chart, IMG Plc led the gainers’ chart in volume terms with 10 per cent to close at N26.40 kobo while Chams Plc followed with a gain of 9.95 per cent to close at N2.32 kobo.

Oando Plc added 9.94 per cent to close at N63.60 kobo. Livestock Feeds gained 9.91 per cent to close at N2.44 kobo, Eterna Plc also appreciated by 9.84 per cent to close at N27.90 kobo.

On the contrary, Neimeth International Pharmaceutical recorded the highest loss with 9.09 per cent to close at N2. Tantalizers trailed with a drop of 8.64 per cent to close at 74 kobo. MTN Nigeria fell by 7.91 per cent to close at N184. Thomas Wyatts dipped by 7.06 per cent to close at N1.58 kobo, Jaiz Bank also depreciated by 6.25 per cent to close at N2.25 kobo.

The volume of traded equites went up by 3.45 million, representing 0.78 per cent as investors traded 446.609 million shares valued at N4.531 billion in 10148 deals against 443.156 million shares worth N5.635 billion exchanged hands the previous day in 8493 deals.

Transactions in the shares of Universal Insurance led market activities with 52.603 million shares valued at N18.782 million, Japaul Gold followed, accounting for 51.804 million shares worth N145.317 million.

Prestige Insurance traded 35.820 million shares valued at N19.525 million, Tantalizer exchanged 35.142 million shares valued at N28.223 million while Chams also exchanged 28.728 million shares worth N65.523 million.