NGX Market Capitalisation Goes Down as Investors Chose Profit-Taking

Investors at the Nigerian Stock Exchange finished Monday's trading session on a negative note as investors chose profit-taking in Dangote Cement Plc, MTN Nigeria Communication Plc, and 35 others, pushing market capitalisation down by N1.82 trillion.

The NGX All-Share Index (NGX ASI) declined by 3,329.55 basis points, or 3.15%, to close at 102,393.23 basis points from a peak of 105,722.78 basis points.

NGX investors lost N1.82 trillion in value as market capitalisation declined to N56.028 trillion from N57.850 trillion the stock market opened for trading that same day.

READ ALSO: See what you need to know about the Nigerian Stock Exchange

As measured by market breadth, investor sentiment closed negative as 18 stocks gained, while 37 stocks declined. 

Top Gainers: Juli led the chart with 9.52% to close at N1.61 per share. DAAR Communications followed with a gain of 8.64% to close at 88 kobo, while SUNU Assurance advanced by 6.74% to close at N1.90 per share. Also, Associated Bus Company rose by 6.67% to close at 96 kobo, while Nigerian Aviation Handling Company (NAHCO) added 5.86% to close at N0.70 per share.

Top Losers: MTNN and Dangote Cement led the chart with 10% each to close at N247.50 and N686.70, respectively, while Nigerian Exchange Group followed with 9.76% to close at N22.20 per share. NEM Insurance lost 9.74% to close at N6.95, while Tantalizers fell by 9.52% to close at 38 kobo, per share.

The total volume of trades decreased by 20.05% to 273.851 million units, valued at N7.439 billion, and exchanged in 9,688 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) led the activity with 28.846 million shares worth N1.126 billion. Transnational Corporation (Transcorp) followed with an account of 20.135 million shares valued at N275.931 million, while Access Holdings traded 15.900 million shares valued at N359.450 million.

READ ALSO: How Herbert Wigwe Led Access Bank to Victory

FBN Holdings (FBNH) traded 15.866 million shares worth N450.742 million, while Zenith Bank traded 15.839 million shares worth N568.046 million.

Analysts from United Capital Plc said,

• As negative sentiments continue to outweigh the positives in the short term, we expect broad-based bearish sentiments to thrive in the short term.

• We foresee activities in the fixed-income market to stand as a critical demotivator for equities investments this week. The uncertainty and overall market expectation of a HIKE in the Monetary Policy Committee (MPC) at this meeting (to be held on February 26 and 27, 2024) may underpin a cautious investment approach toward risk assets.

• Given the tremendous value that still exists in the equities market, on the back of currently undervalued stocks, particularly the banking stocks (which are presently trading beyond the oversold region), we still expect background bargain-hunting activities, albeit overshadowed by the short-term negative sentiment, pending the release of a full year, 2023 financial results and corporate actions from top-tier banks, and other corporates.