NGX Loses N418bn over Selloffs in MTNN
The Nigerian Exchange (NGX) market capitalisation slumped by about N418 billion at the beginning of the week over profit taking in telecom company’s stock –MTN Nigeria Plc – the most valuable market mover in the domestic bourse.
Local investors trading highs and lows are pushing funds into alternative investment options in the fixed income market as the headline inflation rate worsened to 22.04% in March 2023.
In the secondary market, the average yield on Nigerian Treasury bills continues to rise as deposit money banks unpack bills to support liquidity requirements. Similarly, spot rates pricing in the primary market has inched near 15% – 7.04% above the inflation rate.
Reacting to the development in the fixed income segment, investors continue to rebalance their equities holdings to maximize returns and a strategy to diversify income.
Last week stock market lost more than N600 billion, according to MarketForces Africa stock screening data. Opening the week’s low, the domestic market resumed trading activities on a bearish note.
Key performance indicators tumbles while the stock market returned turned negative after a boom outing in the first quarter of the year.
Data from the local bourse showed that the Nigerian Exchange All-Share Index (NGX-ASI) fell 1.5% to 51,127.38 points following losses in MTNN (-6.7%), ZENITH (-0.5%), and FBNH (-1.4%).
As such, year-to-date return weakened to -0.2% from 1.3% while market capitalisation dipped ₦417.6 billion to ₦27.9 trillion. Also, activity level faltered as volume and value traded fell 13.1% and 31.9% to 226.6 million units and ₦1.6 billion, respectively.
Across sectors, Afrinvest Limited told investors via email that performance was mixed as 2 indices lost, 2 gained while the Oil & Gas and Industrial Goods indices closed flat.
On the losing side, the Banking and AFR-ICT indices fell 5.5% and 3.5% respectively due to price depreciation in ZENITH (-0.5%), WEMABANK (-3.7%), and MTNN (-6.7%).
Conversely, bargain hunting on MANSARD (+3.6%), CHIPLC (+8.8%), INTBREW (+3.3), and PZ (+5.0%) pushed the Insurance and Consumer Goods indices up 13bps and 7bps, accordingly.
Investor sentiment, as measured by market breadth, weakened to -0.01x from 0.08x in the prior session as 16 stocks advanced, 17 declined and 68 closed flat. “Tomorrow, we expect the bearish run to be extended due to lack of positive catalyst in the equities market”, Afrinvest limited stockbrokers said.
Today, GTCO Plc announced that a final dividend of ₦2.80k per ordinary share of 50k would be paid on the 11th of May 2023 to shareholders whose names appear in the Register of Members as of 1st of May 2023.
This dividend payment brings the total dividend for 2022 to a total of ₦3.10k. # NGX Loses N418bn over Selloffs in MTNN
Naira Steadies as Banks Issue Update on FX Purchase
