MTN and More: Equity Market Takes a N35bn Dive on Dips

On Wednesday, the Nigerian Exchange Limited witnessed a dip in market capitalization, with a notable N35bn decline. Key contributors to this downturn were MTN Nigeria (-0.63 per cent), Dangote Sugar (-1.64 per cent), Lafarge Africa Plc (-1.34 per cent), United Bank for Africa (-0.24 per cent), and FBN Holdings (-4 per cent), all experiencing reductions in their share values by the close of the trading day.

The All-Share Index and Market Capitalization both depreciated by 0.09 per cent, settling at 71,003.98 points and N39.047tn, respectively. This contrasted with the figures recorded at the close of the market on Tuesday, which were 71,066.64 and N39.082tn, indicating a slight contraction in market performance.

Despite the decrease in capitalization, market breadth, a metric gauging investors’ sentiments, remained positive, revealing 36 gainers and 15 losers in the trading session.

Among the gainers, RT Briscoe, Daar Communications, and Unity Bank led the pack with a 10 per cent gain each, closing at N0.33, N0.66, and N1.54, respectively. Other notable gainers included MeCure Industries (9.96 per cent at N7.62), Multiverse (9.82 per cent at N4.81), and Secure Electronic Technology Plc (9.52 per cent at N0.46 per unit).

Conversely, the decliners’ chart featured C&I Leasing, losing 7.58 per cent to close at N5.26, Prestige Assurance shedding 7.55 per cent of its share value to end trading at N0.49, International Breweries Plc losing 5.56 per cent to close at N4.25 per unit, UPDC Real Estate Investment Trust losing 4.60 per cent to close at N4.15, and FBN Holdings closing at 19.20 per unit after a four per cent drop in its market value.

Examining sectoral performance, the Banking and Insurance sectors recorded marginal gains of 0.19 per cent and 0.75 per cent, respectively. On the flip side, the Consumer Goods and Industrial Goods sectors experienced losses of 0.19 per cent and 0.08 per cent, while the Oil/Gas index remained unchanged.

In terms of market activity, there was an overall improvement. The total deals appreciated by 1.95 per cent to 6,677 trades, and the total traded value for the day surged by 128.85 per cent to N7.37bn. However, the total volume experienced a decline of 12.81 per cent to 428.44 million units.

The stock with the highest trading volume during the session was Veritaskap, trading 62.08 million units valued at N22.87 million, involving 125 trades. MTN Nigeria, on the other hand, emerged as the most traded stock in terms of value, amounting to N2.81bn.

Other stocks contributing significantly to volume and value on the stock exchange included Unity Bank, with 38.66 million units of shares worth N59.41m exchanged in 223 deals. GTCO recorded 33.87 million units of its shares valued at N1.28bn traded in 321 exchanges, and UBA witnessed 19.72 million units of shares worth N407.35m traded in 331 deals.

This market report reflects the dynamic nature of the Nigerian stock exchange, with various stocks experiencing fluctuations in value, contributing to the overall movements in market indices. Investors continue to navigate these changes, making decisions based on the performance of individual stocks and broader market trends. Infostride News will keep you updated on the latest developments in the Nigerian financial landscape as it unfolds.