Nigeria: Stock market records highest gain in three months after MTN Nigeria’s debut

The nation’s stock market recorded its highest gain since February 12 last week as the market capitalisation of equities rose by N1.874tn following the listing of MTN Nigeria Communications Plc on the Nigerian Stock Exchange.

The market started the week on a negative note, as the NSE All Share Index dropped by 98 basis points on Monday while the market capitalisation of equities dropped to N10.701tn from N10.842tn on Friday the previous week.

Further declines were recorded on Tuesday and Wednesday as market sentiment remained bearish.

The NSE ASI, however, increased by 52bps and 153bps on Thursday and Friday respectively following MTN Nigeria’s listing on Thursday.

MTN’s share price gained 21 per cent to close the week at N108.90 with a total bid of 262 million units (227 million units at N108.90 and 34 million units between N90.00 and N108).

Analysts at Afrinvest Securities Limited said 528,600 units of MTN’s shares had been traded so far at a total value of N57.6m.

“Major trades carried out so far are 244,000 units crossed at N108.90; 44,850 units crossed at N108.90 and 203,600 units crossed at N108.90,” they said in a note.

Analysts at Vetiva Capital Management Limited said with significantly high demand for the stock expected to continue, they expected market activity to remain upbeat as investors continued to source the shares.

They said, “We expect the market to close positive at week open as the index continued to rally on the back of the new listing.”

The Nigerian Stock Exchange, in its weekly market report, said a total turnover of 1.172 billion shares worth N17.887bn in 18,380 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.477 billion shares valued at N10.876bn that exchanged hands the previous week in 20,740 deals.

The financial services industry (measured by volume) led the activity chart with 680.592 million shares valued at N7.395bn traded in 11,035 deals, thus contributing 58.09 per cent and 41.34 per cent to the total equity turnover volume and value, respectively.

The conglomerates industry followed with 266.636 million shares worth N818.249m in 1,152 deals. The third place was occupied by the Information and Communications Technology industry with a turnover of 82.390 million shares worth N6.085bn in 346 deals.

Trading in the top three equities, namely Transnational Corporation of Nigeria Plc, Access Bank Nigeria Plc and Guaranty Trust Bank Plc (measured by volume), accounted for 421.064 million shares worth N4.681bn in 3,073 deals, contributing 35.94 per cent and 26.17 per cent to the total equity turnover volume and value, respectively.

The ASI and market capitalisation appreciated by 0.08 per cent and 17.29 per cent to close the week at 28,871.93 and N12.717tn, respectively.

Sixteen equities appreciated in price last week while 42 equities depreciated, compared to the 18 gainers and 49 losers recorded the previous week.

The top gainers for the week were Thomas Wyatt Nigeria Plc, Neimeth International Pharmaceuticals Plc, A.G. Leventis Nigeria Plc, Transnational Corporation of Nigeria Plc and NPF Microfinance Bank Plc, which gained 24 per cent, 22 per cent, 16.67 per cent, 9.73 per cent and 8.89 per cent, respectively.

Regency Assurance Plc, Forte Oil Plc, Champion Breweries Plc, FCMB Group Plc and Wema Bank Plc, whose respective share prices shed 20 per cent, 18.88 per cent, 18.18 per cent, 13.89 per cent and 13.89 per cent were the top losers for the week.