Sell-offs in MTN, TransPower, others pull equity market down by 0.11%

The stock market on Tuesday declined further by 11 percent, due to sell-offs in stocks of MTN Nigeria, Transnational Power (TransPower), Guaranty Trust Holding Company (GTCO), among others.

Other stocks that contributed to the market’s negative performance are: Unilever, Axa Mansard, Cornerstone Insurance, Royal Exchange Assurance, Nigeria Breweries, Fidelity Bank, Julius Berger, among others.

Specifically, the market capitalisation shed N62 billion or 0.11 percent to close at N59.115 trillion, as against 59.177 trillion recorded on Monday.

Similarly, the All-Share Index, which opened at 104,663.34, also lost 0.11 percent or 110.03 points to close  at 104,553.31.

Consequently, the Year-To-Date (YTD) return declined to 39.83 percent.

Analysis of the market activities showed trade turnover was lower than the previous session, with the value of transactions down by 29.69 percent.

Meanwhile, on the loser’s log, Daar Communications led by 9.86 percent to close at 64k per share, Computer Warehouse Group (CWG) followed by 9.09 per cent to close at N5.50 per share.

Sovereign Trust Insurance also lost 8.51 percent to close at 43k, while UPDC Real Estate Investment Trust trailed by 6.36 percent to close at N5.15 per share.

Also, FIDSON Healthcare Plc dropped 6.25 percent to close at N15 per share.

On the gainer’s log, International Energy Insurance led with 10 percent to close at N1.32 per share.

International Breweries gained 9.89 percent to close at N4.89 per share.

Juli Plc also rose by 9.85 percent to close at N5.91, NEM Insurance appreciated by 9.59 percent to close at N8, while FBN Holdings went up by 9.06 percent to close at N43.95 per share.

Also, a total of 307.01 million shares valued at N7.59 billion were exchanged in 9,548 deals, compared to 287.45 million shares valued at N10.80 billion in 9,077 deals recorded on Monday.

FBNH led the activity log both the volume and value chart with 37.81 million shares traded in value of N1.57 billion, followed by United Bank of Africa(UBA) with 36.85 million shares worth N954.38 million.

Access Corporation sold 28.09 million shares worth N649.27 million, Transcorp traded 21.57 million shares valued at N322.62 million and Fidelity Bank transacted 19.81 million shares worth N200.46 million.

Reacting,  Vice Chairman, Highcap Securities Ltd., Mr David Adonri, said that the downward performance of the market was due to little fatigue experienced after a prolonged rally.

Adonri, in an interview noted that it was propelled by demand pull.

He said that the selloffs were in high capitalisation stocks, noting, “hence, any decline on such stock is blown out of proportion.”

He mentioned that the share price of Tier-one banks, which appreciated over the weeks, also witnessed relief from the declines.