Kayode Tokede
The domestic stock market opened the week on a negative note, as profit-taking in MTN Nigeria Communications (MTNN) Plc and 44 others caused the overall capitalization to close lower by N2.34 trillion.
As MTN Nigeria depreciated by 10 per cent, the Nigerian Exchange Limited All-Share Index (NGX ASI) dipped by 3,647.10 basis points, or 1.57 per cent to close at 228,401.92 basis points. Also, market capitalisation depreciated by N2.34 trillion to close at N146.565 trillion.
Sectoral performance was negative as the Insurance (-1.3per cent), Banking (-1.2per cent), Consumer Goods (-0.6per cent), Industrial Goods (-0.4per cent) and Oil and Gas (-0.1per cent) indices declined.
As measured by market breadth, market sentiment was negative, as 12 stocks gained relative to 45 losers. UPDC recorded the highest price gain of 9.23 per cent to close at N3.55, per share. Sovereign Trust Insurance followed with a gain of 4.08 per cent to close at N2.04, while Cornerstone Insurance rose by 3.45 per cent to close at N6.00, per share.
Neimeth International Pharmaceuticals appreciated by 3.03 per cent to close at N8.50, while Livestock Feeds up by 1.92 per cent to close at N7.95, per share.
On the other hand, Learn Africa, Unilever Nigeria and MTNN led the losers’ chart by 10 per cent each to close at N9.00, N126.00 and N747,00 respectively, per share.
Austin Laz & Company and Abbey Mortgage Bank followed with a decline of 9.94 per cent each to close at N3.17 and N7.25 respectively, while Universal Insurance lost 9.90 per cent to close at 91 kobo, per share.
Meanwhile, the total volume traded advanced by 156.4 per cent to 996.47 million units, valued at N43.73 billion, and exchanged in 61,813 deals. Transactions in the shares of Ikeja Hotels topped the activity chart with 305.537 million shares valued at N13.214 billion. Access Holdings followed with 289.901 million shares worth N6.623 billion, while Dangote Sugar Refinery traded 29.363 million shares valued at N1.891 billion.
Chams Holding Company traded 22.012 million shares valued at N87.940 million, while Zenith Bank transacted 21.206 million shares worth N2.360 billion.
On market outlook, United Capital Plc said, “the Nigerian equity market is expected to trade mixed in the week ahead as bargain hunting competes with continued profit-taking. Investors are likely to focus on fundamentally strong stocks, particularly in the banking, industrial and consumer goods sectors, supported by resilient corporate fundamentals ahead of H1 financials release.
Strong external reserves and relative exchange rate stability continue to support investor confidence, although elevated fixed-income yields may limit demand for equities as investors weigh returns across asset classes. Market sentiment will be influenced by movements in oil prices, exchange rate developments and corporate releases, with sector rotation expected to remain a key feature of trading.”
