Selloffs in MTN, Banking Stocks Drag NGX Lower
The equities segment of the Nigerian Exchange, NGX, was faced with sell pressures on Tuesday, resulting in a slowdown in the recent upbeat. Thus, year-to-date return moderated while key performance indicators slump.
Consequent to renewed bearish activity after successive rallies, the local bourse recorded more losers (16) than gainers (12) at the close of Tuesday’s trading session. Consequently, the year-to-date gain of the local bourse slipped to 14.37%, a distance away from the average inflation rate in the local economy in 2022.
Data from the Nigerian Exchange shows that the All-share index declined by 45.54 basis points, representing a 0.09% drop to close at 48,853.54 points at the end of the trading session.
Market size reduced significantly as equities capitalisation slumped by ₦24.80 billion to ₦26,609.21 trillion from ₦26,634.01 trillion yesterday over selloffs in MTN Nigeria, banking and industries stocks.
However, market activities were mixed, as the total volume traded for the day dropped by -31.11%, while the total value traded for the day was up by +53.94%. In a market note, Atlass Portfolios stockbroker said approximately 162.98 million units valued at ₦3,874.70 million were transacted in 3,286 deals.
STERLNBANK was the most traded stock in terms of volume, accounting for 19.40% of the total volume of trades. The tier-2 lender was followed by GTCO (11.79%), CHAMS (10.08%), ZENITH BANK (8.70%), and MTNN (7.64%) to complete the top 5 on the volume chart.
In terms of value of transactions, MTNN took the lead, accounting for 67.00% of the entire trade book in the local exchange as investors began to rebalance their portfolios.
SMURFIT topped the advancers’ chart with a price appreciation of 10.00 percent, trailed by CORNERST (8.70%), BUACEMENT (3.60%), FTNCOCOA (3.323%), ZENITH BANK (2.45%), and eight (8) others. Read: Strong Demand, Healthy Liquidity Drag Yield on T-Bills Lower
Sixteen stocks depreciated, and SCOA was the top loser, with a price depreciation of -9.30% to close at ₦0.78. CHAMS lost 8.70% of its market valuation to today’s bearish moves. JAIZBANK plunged by 8.42% MANSARD fell by 3.68%.
Selloffs hit JAPAULGOLD, losing 3.57% of its market valuation today and MTNN was down by 3.26% as a result of sell pressures, though market sector performance closed positive.
Sectorial performance was upbeat as three out of the five indices closed northward. The NGX Banking index gained 0.64%. NGX Insurance index rose by 0.31% and NGX Industrial popped up by 1.78%.
Meanwhile, the Consumer Goods index and the NGX Oil/Gas index remained unchanged from the previous day. Trading data shows that activity fell as total deals, and volume decreased by 1.47%, and 31.16%, respectively, to 3,285 trades and 163.87 million units. # Selloffs in MTN, Banking Stocks Drag NGX Down