NGX market capitalisation drops by N137bn 

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By Philemon Adedeji

Bearish sentiments still occurred in the Nigerian equities market, yesterday as losses in MTN Nigeria Communications (MTNN), Custodian Investment, Prestige Assurance, Jaizbank and 30 others dragged the market overall capitalisation  lower by N137 billion as investors sought to take advantage of the rising yield environment in the fixed income space.

The market continued in a downward spiral shedding further as investors’ sentiment toward the equities market continued to diminish following the Monetary Policy Rate (MPR) hike by the MPC in its recently concluded meeting.

The All Share Index (ASI) decreased by 253.82 absolute points, representing a dip of 0.50 per cent to close at 50,188.55 index points. Similarly, in Naira term, the NGX market capitalisation records N137 billion loss to close at N27.065 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are MTN Nigeria Communications (MTNN), Chemical Allied Products (CAP), Ardova, United Capital and Guaranty Trust Holding Company (GTCO) and 30 others.

Looking ahead to the rest of the week, United Capital Plc expected extended sell pressure across stocks in the local bourse as investors will continue to switch assets, considering the climbing interest rate environment.

“However, we maintain that investors and fund managers will continue to cherry-pick stocks with good fundamentals, as the H1, 2022 earnings season has already commenced,” it stated.

Market breadth, which is measure by market sentiment remained negative, as three stocks gained relative to 34 losers.

NGX ASI MIDWEEK MOST GAINERS

FCMB Group recorded the highest price gain of 3.33 per cent to close at N3.10, per share.  NASCON Allied Industries (NASCON) followed with a gain 0.91 per cent to close at N11.10, while Nigerian Breweries appreciated by 0.42 per cent to close at N47.50, per share.

NGX ASI MIDWEEK MOST LOSERS

On the other hand, Custodian Investment, Prestige Assurance and Jaiz Bank led the losers’ chart by 10 per cent each to close at N6.30, 36 kobo and 72 kobo per share respectively.

Meyer Plc followed with a decline of 9.92 per cent to close at N2.27, while Cutix Plc went down by 9.78 to close at N2.03 per share.

The total volume traded rose by 431.17 per cent to 829.511 million units, worth N4.105 billion, and exchanged in 4,977 deals.

Transactions in the shares of International Energy Insurance topped the activity chart with 637.105 million shares valued at N1.019 billion. Transnational Corporation of Nigeria (Transcorp) followed with 23.272 million shares worth N23.209 million, while GTCO traded 15.701 million shares valued at N313.150 million.

United Bank for Africa (UBA) traded 13.204 million shares valued at N92.255 million, while FBN Holdings (FBNH) transacted 12.679 million shares worth N138.117 million.