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Sell-offs in MTN, others pull NGX market capitalisation down by N673bn

Supreme Desk
25 April 2024 2:26 PM IST
Sell-offs in MTN, others pull NGX market capitalisation down by N673bn
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The All-share Index also lost 1.20 per cent or 1,190 points to close at 98,121.30, in contrast to 99,311.54 posted in the previous session.

The Nigerian equity market experienced a downturn on Wednesday, losing N673 billion in market capitalisation due to sell-offs in major stocks like MTN Nigeria and Transcorp Hotel

Specifically, the market capitalisation shed 1.20 percent, or N673 billion, to close at N55.494 trillion, compared to 56.167 trillion recorded on Tuesday.

The all-share index also lost 1.20 percent, or 1,190 points, to close at 98,121.30, in contrast to 99,311.54 posted in the previous session.

Consequently, the year-to-Date (YTD) return declined to 31.22 percent.

Other declined equities, such as FBN Holdings, Cornerstone Insurance, and Mutual Benefits Assurance, among others, also affected market performance negatively.

However, the market breadth closed positive, with 22 advanced stocks outnumbering 19 declined stocks.

On the gainers log, Sunu Assurances, Neimeth International Pharmaceuticals, and The Initiative Plc (TIP) led by 10 percent each to close at N1.21, N1.98, and 1.98 per share, respectively.

Cap Plc followed closely with 9.90 percent to close at N28.85, and UPDC Real Estate Investment Trust rose by 9.76 percent to close at N1.35 per share.

On the flip side, Transcorp Hotel and MTN led the losers by 10 percent each to close at N87.93 and N201.60 per share, respectively.

Oando trailed closely by 9.90 percent to close at N9.10, FBN Holdings lost 9.82 percent to close at N19.75, and FIDSON Healthcare Plc dropped 9.82 percent to close at N19.75 per share.

Analysis of the market activities also showed trade turnover settled higher relative to the previous session, with the value of transactions up by 22.10 percent.

A total of 395.75 million shares valued at N9.58 billion were exchanged in 7,907 deals, as against 574.43 million shares valued at N7.84 billion in 7,324 deals traded previously.

Meanwhile, Guaranty Trust Holding Company Plc (GTCO) led the volume and value chart with 81.41 million shares valued at 2.93 billion, followed by 46.16 billion shares worth N1.69 billion.

The United Bank of Africa (UBA) traded 41.60 million shares worth N953.52 million, FBN Holdings transacted 23.44 million shares valued at N480.99 million, and Access Corporation sold 22.30 million shares worth N361.89 million.

Reacting, Mr. David Adonri, Vice Chairman, Highcap Securities Ltd., said that the equity market had been undergoing some forms of corrections to realign it with the fundamentals of the capital market.

Adonri, in an interview with the newsmen in Lagos, said this was responsible for the recent bearish mood of the market.

According to him, underpinning this correction is the high yield on debt and the failure of equities to justify its exuberant rally.

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