MTN Nigerian Plc, a leading telecommunications company listed on the Nigerian Exchange Group Plc (NGX), emerged as the top loser, reporting a substantial loss of approximately N982 billion by the close of weekly trading. This decline, driven by sustained selling pressure observed on the stock, positioned MTN Nigeria Plc at the forefront of market losses for the week.
MTN’s stock experienced a dramatic plummet of 18.91%, closing at N200.70 per share. This sharp decline resulted in a reduction in the company’s market capitalization from N5.196 trillion to N4.214 trillion compared to the opening figures for the trading week, where it stood at N247.50 per share. The significant decrease in MTN’s share price sent shockwaves through the market, prompting investors to closely monitor developments within the telecommunications sector.
In addition to MTN Nigeria Plc, three other notable losers experienced considerable declines in their share prices throughout the week. Shares of Sunu Assurance Nigeria Plc witnessed a decline of 18.18% to close at N1.71 per share from the week’s opening value of N2.09. Similarly, Nestle Nigeria Plc recorded an 18.18% drop, closing trading at N900.00 per share from an opening figure of N1,100. Furthermore, CWG Plc’s shares decreased by 11.76% to close at N6.00 per share from the opening price of N6.80 per share.
The overall performance of the Nigerian equities market witnessed a decline of 3.27% week-on-week (w/w), erasing a significant portion of the gains made in the preceding week. The benchmark index, NGX All-Share Index, settled at 98,751.98 points by the end of the week, marking a decrease from the week’s opening position of 101,995.53 points on Monday. Market analysts attribute this downturn to investors capitalizing on profits following a notable bullish rally observed in recent periods.
Furthermore, the recent hike in policy rates has prompted investors to redirect their focus towards fixed-income markets, consequently impacting the performance of the equity market. This shift in investor sentiment has led to increased volatility and uncertainty within the market, as participants navigate evolving economic conditions and regulatory developments.
Despite the overall decline in market performance, some sectors experienced modest gains during the week. The NGX ASem, NGX AFR Bank Value, and NGX Sovereign Bond indices appreciated by 16.93%, 1.15%, and 8.25% respectively. However, these gains were overshadowed by the broader market losses witnessed across various sectors.
In terms of trading activity, investors on the floor of the Exchange engaged in a total turnover of 1.882 billion shares worth N34.149 billion in 48,464 deals during the week. This marked an increase from the previous week’s turnover of 1.377 billion shares valued at N31.584 billion in 42,040 deals. The Financial Services Industry led the activity chart, contributing 67.78% and 59.82% to the total equity turnover volume and value respectively. The Conglomerates Industry followed closely, while the Oil and Gas Industry also recorded notable trading volumes.
In summary, the Nigerian equities market witnessed a week of mixed fortunes, characterized by significant losses for some key players and modest gains in select sectors. As investors navigate ongoing market dynamics, heightened volatility and regulatory developments are expected to continue shaping market sentiment in the weeks ahead.
