The domestic stock market yesterday closed lower to commence trading for the week as losses in MTN Nigeria Communications (MTNN) Plc and 14 others dragged the market down by N48 billion.
The All-Share Index declined by 84.34 per cent, representing a loss of 0.08 per cent, to close at 99,840.95 points. Similarly, the overall market capitalisation value lost N48 billion to close at N56.479 trillion.
The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; MTN Nigeria Communications (MTNN), Nigerian Breweries, FBN Holdings, United Bank for Africa (UBA) and FCMB Group.
Looking ahead, United Capital Plc said “we expect activities in the fixed income market to continue to stand as a strong demotivator toward equities investments. A strong hope for the market is the expected high base effect for inflation in June 2024.
“Given the indications that the equities market is considerably oversold, induced by the +750bps MPR hike year-to-date, we expect bargain-hunting in the equities market to remain unabated, particularly around fundamentally sound stocks (currently trading around their oversold region), and stocks with pending corporate actions.”
However, market breadth closed positive, as 40 stocks gained relative to 15 losers. University Press recorded the highest price gain of 10 per cent to close at N2.75, per share. Guinness Nigeria followed with a gain of 9.96 per cent to close at N66.25, while Champion Breweries increased by 9.83 per cent to close at N3.24, per share.
Honeywell Flour Mills appreciated by 9.52 per cent to close at N3.45, while Veritas Kapital Assurance rose by 9.46 per cent to close at 81 kobo, per share.
On the other hand, Caverton Offshore Support Group led the losers’ chart by 9.62 per cent to close at N1.41, per share. Associated Bus Company followed with a decline of 9.52 per cent to close at 57 kobo, while Nigerian Breweries lost 8.37 per cent to close at N29.00, per share.
Wapic Insurance shed 5.71 per cent to close at 66 kobo, while AXA Mansard Insurance lost 4.37 per cent to close at N5.25, per share.
Also, the total volume of trade increased by 334.91 per cent to 1.383 billion units, valued at N16.484 billion, and exchanged in 9,899 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 1.047 billion shares valued at N11.317 billion. AIICO Insurance followed with 60.671 million shares worth N58.897 million, while Veritas Kapital Assurance traded 55.732 million shares valued at N44.315 million.
UBA traded 21.641 million shares valued at N480.450 million, while Zenith Bank transacted 15.269 million shares worth N545.480 million.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
