Stock Market Down N34.5bn on Profit-taking in MTNN, 14 Others

Kayode Tokede

Bearish sentiments returned to the stock market of the Nigerian Exchange Limited (NGX) yesterday as investors lost N34.5 billon of their investment following profit-taking activities in MTN Nigeria Communications (MTNN) Plc and 14 others.

As MTN Nigeria depreciated by 0.63 per cent or N1.50 per share to N238 per share and  FBN Holdings dropped four per cent or N0.80 per share to N19.20 per share, the  NGX All-Share Index declined by 62.66 basis points or 0.09 per cent, to close at 71,003.98 basis points from 71,066.64 basis points.

Consequently, the overall market capitalisation value shed N34.5 billion to close at N39.048 trillion from N39.082 trillion it closed the previous day.

Sectoral performance was mixed as the NGX Consumer Goods Index dropped by 0.19per cent and NGX Industrial Index depreciated by 0.08per cent, while the NGX Banking Index added 0.19per cent. Elsewhere, the NGX Oil and Gas Index closed flat at 988.17 basis points.

Analysts at InvestmentOne Research said, Nigerian stock market ended on a bullish note due to the sell-offs witnessed in the Consumer Goods and Industrial sectors.

Looking ahead, they said, “we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”

However, investor sentiment, as measured by market breadth remained positive as 36 stocks advanced, while 15 declined. DAAR Communications, R. T. Briscoe and Unity Bank recorded the highest price gain of 10 per cent each to close at 33 kobo, 66 kobo and N1.54 respectively, per share.

MeCure Industries followed with a gain of 9.96 per cent to close at N7.62 and Multiverse Mining and Exploration up by 9.82 per cent to close at N4.81, per share.

On the other hand, C&I Leasing led the losers’ chart by 7.56 per cent to close at N5.26, per share. Prestige Assurance followed with a decline of 7.55 per cent to close at 49 kobo, while International Breweries lost 5.56 per cent to close at N4.25, per share.

UPDC Real Estate Investment Trust down by 4.60 per cent to close at N4.15, while FBNH declined by 4.00 per cent to close at N19.20, per share.

The total volume traded declined by 12.8 per cent to 428.44 million units, valued at NGN7.37 billion, and exchanged in 6,677 deals.

Transactions in the shares of Veritas Kapital Assurance topped the activity chart with 62.079 million shares valued at N22.865 million. Unity Bank followed with 38.656 million shares worth N59.406 million, while Guaranty Trust Holding Company (GTCO) traded 33.873 million shares valued at N1.284 billion.

United Bank for Africa (UBA) traded 19.722 million shares valued at N407.355 million, while Jaiz Bank transacted 19.046 million shares worth N30.627 million.