NGX opens week bullish with N277bn growth on MTNN gain

Trading on the Nigerian stock market resumed the week with positive sentiments following renewed interest in MTN Nigeria Communications (MTNN).

The market capitalisation inched higher by N277 billion to close at N22.131 trillion from N21.854 trillion posted on Friday.

Also, the All-Share Index grew by 528.15 points or 1.26 per cent to close at 42,411.12 compared with 41,882.97 achieved on Friday.

Accordingly, the month-to-date loss moderated to 1.9 per cent, while year-to-date gain increased to 5.3 per cent.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; MTNN, Dangote Cement, Vitafoam, GlaxoSmithKline and Nigerian Exchange Group (NGXGroup).

This week, analysts at Cordros Securities Ltd expect the bulls to regain dominance in the market given the moderation in the prices of bellwether stocks in the last three weeks.

“However, we do not rule out the possibility of continued profit-taking activities.”

“In addition, we believe the outcome of the bond auction scheduled to hold during the week will also shape market sentiments.”

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” they said.

Market breadth closed positive with 23 gainers against 16 laggards.

Meyer drove the gainers’ chart in percentage terms with 9.09 per cent to close at 36k per share.

Academy Press followed with 8.51 per cent to close at 51k, while FTN Cocoa processors appreciated by 8.11 per cent to close at 40k per share.

Glaxosmithkline rose by 7.08 per cent to close at N6.05, while MTNN appreciated by 7.08 per cent to close at N186.80 per share.

On the other hand, NASCON Allied Industries led the losers’ chart in percentage terms by 6.79 per cent to close at N13.05 per share.

Cornerstone Insurance followed with a decline of six per cent to close at 47k, while Wapic Insurance went down by 5.88 to close at 48k per share.

Oando dipped 4.26 per cent to close at N4.72, while Champion Breweries shed 4.06 per cent to close at N2.60 per share.

However, the total volume of trades declined by 48.4 per cent with an exchange of 229.64 million shares worth N3.29 billion traded in 4,426 deals.

This was in contrast with a turnover of 444.94 million shares valued at N3.42 billion traded in 3,594 deals on Friday.

Transactions in the shares of Unity Bank topped the activity chart with 48.32 million shares valued at N20.45 million.

Universal Insurance followed with 21.1 million shares worth N4.22 million, while FBN Holdings traded 19.89 million shares valued at N235.19 million.

UPDC Real Estate Investment Trust traded 16.93 million shares N75.84 million, while Guaranty Trust Holding Company transacted 12.84 million shares worth N336.81 million.