Nigerian Stocks to Remain Bullish on MTNN Listing

Business Finance Latest News

Following the significant buying interest on the newly listed MTN Nigeria (MTNN) on the Nigerian Stock Exchange (NSE), analysts are predicting that the local bourse will maintain its first bullish performance after a protracted series of losses as investors look to extend trade in MTN’s fundamentally sound stock.

The local bourse which halted the bearish trend on the 9th session closed on Thursday, May 16, in green, also as a result of bargain hunting in UNILEVER (+3.2%), UBN (+1.5%) and NPFMCRFBK (+9.7%), says market experts at Afrinvest in their report of Thursday’s trading activities.

Also Read: SEC Warns against Latest Ponzi Scheme, Loom

They noted that the All Share Index consequently closed 0.5% higher, to settle at 28,438.19 points, moderating year-to-date (YTD) losses to -9.5% while market capitalisation rose N1.9 billion to close at N12.5 trillion as a total of 5.5m units shares of MTNN was traded at N99/share valued at N548.6m.

Similarly, activity level strengthened as volume and value traded advanced 76.7% and 35.4% to 312.4m units and N2.8bn respectively. The top traded stocks by volume were TRANSCORP (105.5m units), ACCESS (23.5m units) and FCMB (23.2m units) while the top traded stocks by value were GUARANTY (N511.2m), NIGERIAN BREWERIES (N494.6m) and ZENITH (N325.3m)

For the second consecutive trading session, all five major indices closed negative. The Banking index declined the most, down 1.7% on account of price depreciation in GUARANTY (-1.9%) and ZENITH (-2.3%). The Industrial Goods and Consumer Goods indices trailed, shedding 1.0% and 0.8% respectively as investors sold off on DANGCEM (-1.1%), WAPCO (-1.9%), CUTIX (-8.3%), and DANGSUGAR (-2.2%) while the Oil & Gas index slid 0.6% following sell pressures in OANDO (-4.3%). Finally, the Insurance index marginally declined 0.1% on the back of losses in AIICO (-4.4%).   

Investor sentiment softened as market breadth (advance/decline ratio) eased to 0.4x from 0.6x recorded in the previous trading session as 10 stocks advanced relative to 25 decliners.

The best performing stocks were NPFMCRFBK (+9.7%), ABCTRANS (+7.4%) and WAPIC (+5.6%) while UNITYBANK (-9.7%), CUTIX (-8.3%) and SOVRENINS (-8.0%) were the underperforming stocks.

1 thought on “Nigerian Stocks to Remain Bullish on MTNN Listing

Comments are closed.