Nigeria’s Stock Market Starts New Week on a Negative Note As Investors Lose Over N290bn

• The Nigerian stock market on Monday recorded a poor performance as investors lost N297 billion
• Data shows that stocks like E-Tranzact International and other major decliners drove the movement into the red zone
• Tantalizers, VFD Group, Access Holdings, Zenith Bank and insurance company AIICO were mostly traded stocks.

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigeria’s equities market opened the week on a negative note as the benchmark index declined by 0.24% on Monday, May 12, wiping out about N297 billion from investors’ wealth amid profit taking.

Data from the Nigerian Exchange Limited (NGX) showed that the market All-Share Index (ASI) fell to 108,261.47 points from the previous close of 108,733.4 points.

While market capitalisation also declined, dropping from N68.339 trillion to N68.042 trillion.

Analysts at Futureview Research had forecast a mixed session for the week, citing profit-taking and inflation concerns, while also pointing to strong Q1 earnings and undervalued stocks as potential support for investor sentiment.

In a note, it said:

“Looking forward, the equities market might be mixed as investors await the MPC’s decision next week.

"The elevated interest rate environment and retail investors’ profit booking could dampen momentum,” Futureview said in a note."

How Stock market performed on Monday

Monday’s trading saw 414.57 million shares worth N10.72 billion exchanged in 16,664 deals. Tantalizers, VFD Group, Access Holdings, Zenith Bank, and AIICO Insurance ranked among the most actively traded stocks.

Here is a snapshot of Monday activities.

Top gainers

• Multiverse Mining and Exploration Plc gained N1.00, rising from N10.00 to N11.00 per share (+10.00%).
• Smurfit Print Nigeria Plc gained N0.05, moving from N0.50 to N0.55 per share (+10.00%).
• Meyer Plc gained N0.80, increasing from N8.00 to N8.80 per share (+10.00%).
• Beta Glass Plc rose by N16.05, climbing from N160.65 to N176.70 per share (+9.99%).
• Honeywell Automation and Control Ltd (HMCALL) gained N0.42, rising from N4.25 to N4.67 per share (+9.88%).

Top losers

• eTranzact International Plc declined by N0.60, falling from N6.00 to N5.40 per share (−10.00%).
• John Holt Plc dropped N0.55, decreasing from N5.80 to N5.25 per share (−9.48%).
• Union Dicon Salt Plc lost N0.80, moving from N8.45 to N7.65 per share (−9.47%).
• C&I Leasing Plc declined by N0.35, dropping from N4.21 to N3.86 per share (−8.31%).
• Linkage Assurance Plc lost N0.10, decreasing from N1.24 to N1.14 per share (−8.06%).

Top active trades

• Tantalizers Plc recorded a turnover of 49.19 million shares valued at N113.21 million.
• VFD Group Plc traded 48.88 million shares worth N782.31 million.
• Access Holdings Plc exchanged 29.43 million shares valued at N629.38 million.
• Zenith Bank Plc recorded 24.32 million shares worth N1.18 billion.
• AIICO Insurance Plc traded 19.11 million shares amounting to N30.98 million.

Naira bounces back against dollar

Earlier, Legit.ng reported that the naira has appreciated against the United States dollar in the official foreign exchange market.

The new exchange rate comes on the back of consecutive losses for the naira across all markets.

Pressure on the naira against the US dollar in the parallel market continued as BDC traders increased exchange rates.

Source: Legit.ng