The Nigerian Exchange (NGX) market capitalisation fell by one trillion naira in April as profit takers booked early departures ahead of the local bourse’s earnings season.
The significant losses were caused by bad performance in the banking index as a result of weak emotions, as well as a selloff in telecom company shares – MTN Nigeria and Airtel both suffered negative price movements.
The month of April saw few trading days owing to holidays, but that did not stop market stimulating events from taking place, according to stockbrokers at Afrinvest Ltd in a note. Stock market boosting events include dividend payouts, business earnings announcements, pricing changes, and boardroom squabbles, according to stock experts.
Afrinvest said nevertheless, the bears outperformed the bulls on most of the trading days, which led to a sustained month-on-month decline on the bourse. Monthly trading activity expanded as average volume and value traded rose 242.2% and 64.7% to 1.1bn units and ₦5.2bn respectively.
TRANSCORP led the top traded stock as 667.2 million shares exchanged hands, followed by UBA with total trade valued at 410.6 million units while COURTVILLE did 327.4 million units
Meanwhile, stockbrokers reported that GTCO led by value with a total sum of ₦7.4 billion on record followed by MTNN ₦4.9 billion while UBA did ₦3.3 billion. In its market brief, Afrinvest Limited said within its sector coverage, monthly performance was downbeat as only 2 indices recorded gains.
Nonetheless, according to Afrinvest, the bears outperformed the bulls on the majority of trading days, resulting in a sustained month-on-month decline on the bourse. Monthly trading activity increased by 242.2% and 64.7%, respectively, to 1.1 billion units and 5.2 billion dollars.
TRANSCORP was the most actively traded stock, with 667.2 million shares moved, followed by UBA with 410.6 million units sold, and COURTVILLE with 327.4 million units traded.
Meanwhile, stockbrokers reported that GTCO led the pack in terms of value, with a total of $7.4 billion on record, followed by MTNN’s 4.9 billion and UBA’s 3.3 billion. Afrinvest Ltd stated in its market brief that within its sector coverage, monthly performance was negative, with only two indexes recording increases.
The firm stated that leading the losers pack was the AFR-ICT and Banking indices which dipped 10.4% and 3.3% respectively on the back selloffs in AIRTELAF (-15.5%), MTNN (-4.7%), ZENITH (-11.8%), and UBA (-7.2%). Trailing, losses in ETERNA (-14.0%), SEPLAT (-3.0%), and WAPCO (-7.3%) pushed the Oil & Gas and Industrial Goods indices lower by 1.7% and 0.4% in that order., according to trading record.
Conversely, the Consumer Goods and Insurance indices gained 4.8% and 3.9% respectively due to buying interest in HONYFLOUR (+42.3%), BUAFOODS (+11.8%), MANSARD (+24.7%), and LINKASSU (+14.0%).
Investor sentiment, as measured by market breadth, improved to -0.01x from -0.3x recorded last month as 41 stocks gained, 42 lost and 69 were unchanged. TRANSCORP (+102.2%), NAHCO (+47.5%), and HONYFLOU (+42.3%) were the top performing stocks for the month, while ROYALEX (-28.2%), CHAMPION (-21.3%), and AIRTELAF (-15.5%) were the top underperforming stocks.
The strong surge in TRANSCORP was driven by large share acquisitions by Femi Otedola (2.6bn units & 6.3%) and Heirs Holdings Limited (9.9bn units & 25.6%), but the former had left his holding by the end of the month.
Moving forward, Afrinvest stock analysts predict further bearish momentum in May, barring any positive trigger.
Overall, the benchmark index decreased 3.4% to 52,403.51 points, with the year-to-date return falling to 2.2% from 7.0%, and market capitalization falling by 1.0 trillion to 28.5 trillion.
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