Bearish sentiment resurfaced on the Nigerian Exchange Limited on Wednesday to halt its three-day winning streak due to sell-offs pressure on the shares of MTNN and ZENITHBANK as both stocks shed 2.7 and 1.2 percent respectively from their opening share price for the day.
As a result, the NGX benchmark index, the All-Share Index, was dragged down by 0.1 percent to 105,475.38 points. Similarly, the market capitalisation declined to N66.14 trillion as investors lost N73.93 billion, while the Month-to-Date and Year-to-Date returns settled lower at -2.2 percent and +2.5 percent, respectively.
However, market analysis shows that despite the decline in the benchmark index, trading activities surged significantly with total traded volume skyrocketing by 1,548.98 percent to 5.76 billion units, while total transaction value jumped 2,172.65 percent to N342.61 billion. Indicating heightened investors’ participation.
The number of deals declined by 12.39 percent, closing at 10,908 transactions, indicative of a showdown in overall market participation. However, market breadth remained strong at 1.38, a signal that gainers outnumbered losers as 30 stocks gained relative to 17 losers. MBENEFIT and ROYALEX led the gainers table with 10.0 and 9.9 percent price increase respectively while UHOMREIT and ABCTRANS posted 9.9 and 9.8 percent loss each at the top the lagged chart for the day.
WAPCO was the most traded stock by volume and value at 3.53 billion units and NGN4.47 billion, respectively.
Sectoral performance was broadly positive as the Insurance, Consumer Goods, and Banking indices closed higher advancing by 2.6, 0.4 and 0.1 percent respectively. The Industrial Goods and Oil & Gas indices remained unchanged.
The NASD OTC Securities Exchange posted a decline, as the NSI dropped by 0.75 percent to 3,315.2 points, with market capitalisation also dropping by 0.75 percent to N1.91 trillion.
Despite the decline, market activity surged as trading volume jumped 78.22 percent to 30,026 units, value increased 15.59 percent, and the number of deals spiked 225 percent, indicating increased investor participation.
SDOKITIPUPA (-10.00 percent) closed at N256.50, leading the losers’ chart and weighing down the overall index, with no gainers recorded.
The overnight lending rate expanded by 450bps to 32.8 percent following debits for the FGN bond PMA (N271.23 billion).
Activities in the NTB secondary market were calm, albeit with a bullish undertone, as the average yield contracted by 1bp to 19.2 percent.
Across the curve, the average yield pared at the short (-1bp), mid (-1bp), and long (-1bp) segments, driven by the demand for the 92DTM (-1bp), 169DTM (-1bp), and 330DTM (-1bp) bills, respectively. Similarly, the average yield declined by 1bp to 22.5% in the OMO segment.
Meanwhile, trading in the Treasury bond secondary market was quiet, as the average yield remained unchanged at 18.5 percent. Across the benchmark curve, the average yield closed flat at the short, mid and long segments.