Equities market drops by N158bn

Trading activities on the equities market of the Nigerian Exchange Limited (NGX) on Tuesday closed negative, as price decline in MTN Nigeria Communications (MTNN) and 21 others pulled the market lower by N158 billion.

The NGX All-Share Index (ASI) dropped by 288.69 basis points or 0.43 per cent to close at 66,482.28 basis  points. Also, market capitalisation declined by N158 billion to close at N36.386 trillion.

As a result, the Month-to-Date and Year-to-Date returns printed +0.2per cent and +29.7per cent, respectively.

Market performance was mixed as the NGX Consumer Goods (+0.18per cent) sectors closed upwards, while the NGX Banking (-0.02 per cent) and NGX Industrial (-0.01 per cent) sectors closed downwards. Elsewhere, the NGX Oil & Gas sector closed flat.

Investor sentiment, as measured by market breadth, was strengthened as 29 stocks advanced, while 22 declined. Oando emerged the highest price gainer of 9.88 percent to close at N9.45, per share. Red Star Express followed with a gain of 9.81 percent to close at N2.91, while Tripple Gee and Company rose by 9.68 percent to close at N2.38, pershare.

R.T. Briscoe Nigeria increased by 9.43 percent to close at 58 kobo, while Universal Insurance up by 9.09 percent to close at 24 kobo, per share. On the other side, Ikeja Hotel and Wema Bank led the losers’ chart with 10 per cent each to close at N3.15 and N4.23 respectively, while Associated Bus Company followed with a decline of 8.86 per cent to close at 72 kobo, per share.

Royal Exchange depreciated by 8.00 per cent to close at 46 kobo, while Consolidated Hallmark Insurance dropped by 5.60 per cent to close at N1.18, per share.

The total volume of trades increased by 80.5 per cent to 657.52 million units, valued at N4.60 billion, and exchanged in 6,646 deals. Transactions in the shares of Universal Insurance led the activity with 336.294 million shares worth N80.457 million. Fidelity Bank followed with an account of 31.689 million shares valued at N264.857 million, while Consolidated Hallmark Insurance traded 25.126 million shares valued at N29.424 million.

Guaranty Trust Holding Company traded 24.633 million shares worth N885.386 million, while Wema Bank traded 24.016 million shares worth N103.814 million.

Analysts at InvestmentOne Research said, “The local bourse recorded an uptick due to the bullish sentiments around the Consumer Goods sector.

“Going forward, 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.”