The most valuable market mover on the local exchange, MTN Nigeria Plc, a telecom firm, saw its stock price fall by roughly N418 billion at the start of the week as investors took profits.
Since the headline inflation rate worsened to 22.04% in March 2023, local investors who fluctuate between highs and lows are diverting money into alternative investment possibilities in the fixed income market.
As deposit money banks unpack notes to meet liquidity needs, the average yield on Nigerian Treasury bills is rising in the secondary market. Similar to how spot rates have crept up to 15% – 7.04% over inflation – in the primary market. Investors continue to adjust their equity holdings in response to developments in the fixed income market in an effort to optimize returns and diversify income.
MarketForces Africa stock screening statistics show that the stock market lost more over N600 billion last week. The domestic market started trading again at the low point for the week. As the stock market went negative following a boom excursion in the first quarter of the year, key performance metrics fell.
The Nigerian Exchange All-Share Index (NGX-ASI), according to data from the local market, dropped 1.5% to 51,127.38 points as a result of declines in MTNN (-6.7%), ZENITH (-0.5%), and FBNH (-1.4%).
As a result, year-to-date return decreased from 1.3% to 0.2%, and market capitalization decreased by 417.6 billion dollars to 27.9 trillion dollars. Moreover, activity levels declined as volume and value exchanged decreased to 226.6 million units and 1.6 billion, respectively, by 13.1% and 31.9%.
Afrinvest Limited informed investors via email that performance was uneven across sectors, with two indices losing, two gaining, and the Oil & Gas and Industrial Goods indexes closing level. Due to price declines in MTNN (-6.7%), ZENITH (-0.5%), WEMABANK (-3.7%), and WEMABANK, respectively, the Banking and AFR-ICT indexes declined by 5.5% and 3.5%, respectively.
On the other hand, bargain hunters drove up the Insurance and Consumer Goods indexes by 13 bps and 7 bps, respectively, on MANSARD (+3.6%), CHIPLC (+8.8%), INTBREW (+3.3), and PZ (+5.0%).
Market breadth, a gauge of investor mood, fell to -0.01x from 0.08x in the previous session as 16 stocks rose, 17 fell, and 68 finished unchanged. Due to the absence of a positive trigger in the equity market, Afrinvest limited stockbrokers predicted that the negative trend will continue tomorrow.
GTCO Plc stated today that stockholders whose names are listed in the Register of Members as of May 1, 2023 would receive a final dividend of 2.80k per ordinary share of 50k on May 11, 2023. This dividend payment brings the total dividend for 2022 to a total of ₦3.10k.
