The Nigerian Stock Exchange equity market recorded gains for the third straight trading days on Tuesday despite weak investor sentiment.
The positive close was driven by the gain in MTNN due its high market capitalization, despite higher number of stocks declining compared to those which advanced.
The All-Share Index closed 0.31% up at 25,654.90 significantly higher than 0.01% rise the index recorded on Monday, while the market capitalization rose by N42.095 billion to close at N13.408 trillion.
YTD return moderated to -4.42%
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Activity level
The turnover improved by 33.6% from the level seen on Monday, due to increased activity in high value stocks like MTNN. Total of 262.046 million units of shares valued at N4.340 billion exchanging hands in 3,254 deals on Tuesday.
Four out the top five traded equities by volume were banking stocks. The most traded equity by volume was ZENITHBANK, with 45.884 million shares valued at N766.267 million traded in 371 deals. It was followed by FBNH with 24.138 million shares and TRANSCORP with 20.969 million shares.
In terms of value, MTNN topped with 13.279 million shares valued at N1.594 billion traded in 126 deals. It was followed by ZENITHBANK and PRESCO.
Performance of Indices
All five indices under our watch recorded losses with the insurance index exhibiting worst performance. Below are the performances of the five indices;
- The Insurance Index dipped by 1.11%
- The Banking Index was down by 0.60%
- The Oil and Gas Index declined 0.15%
- The Industrial Goods Index dropped 0.11%
- Consumer Goods Index declined by 0.10%
Investor sentiment
Investor sentiment as measured by market breadth (gain/loss ratio) was weak at 0.53x, as 9 stocks advanced with 17 declining.
The top five gainers by percentage and closing prices are;
- REDSTAREX rose by 9.80% to close at N3.25
- CHIPLC rose by 9.68% to close at N0.34
- TRANSEXPR rose by 9.33% to close at N0.82
- LASACO rose by 4.00% to close at N0.26
- MTNN rose by 2.41% to close at N123.00
The top five decliners by percentage are;
- UBN lost 6.54% to close at N5.00
- CORNEST lost 6.25% to close at N0.60
- LINKASSURE lost 5.00% to close at N0.38
- MBENEFIT lost 4.76% to close at N0.20
- COURTVILLE lost 4.76% to close at N0.20
The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) in a meeting held on Tuesday voted to reduce the Monetary Policy Rate (MPR) to 11.5% from 12.5%.
Read more; Update: CBN reduces MPR to 11.5% from 12.5%, deposit savings rate to be affected
Naira value remained stable at N365/$1 on Tuesday at the parallel market.
Oil prices rose from the lows seen earlier in the week, with Brent crude futures trading at $42.21 per barrel and WTI at $39.79 per barrel.
Written by;
Ifunanya Ikueze
