Thursday, March 28, 2024

NGX market capitalization sheds N24.8bn as MTN records biggest loss

  • Exchange seeks better partnership with CSCS to grow capital market

BY BAMIDELE FAMOOFO

The market capitalization of equities on the Nigerian Exchange Limited recorded a loss of about N24.8 billion on Tuesday as investors in the shares of telecommunications giant, MTN Nigeria registered the biggest loss of the day.

Market capitalization closed at N26.61 trillion with year-to-date return of the bourse dropping to 14.37 percent.

MTN Nigeria Plc recorded the biggest loss of the day with its share value dropping by -3.26 percent while banking stock, Stanbic IBTC Plc shed -1.83 percent in share value.

Bearish sentiment drove the domestic bourse on Tuesday as the NGX All-Share Index closed 0.09 percent lower to settle at 48,853.54 points.

Sustained investor interest in BUA Cement Plc (+3.60%), Zenith Bank Plc (+2.45%) and WAPCO (+0.23%) was eroded by losses in MTNN (-3.26%) and STANBIC (-1.83%).

Analysis of market activities on Tuesday showed trade turnover settled higher relative to the previous session, with the value of transactions up by 53.94 percent. A total of 162.98 million units of shares valued at N3.87 billion were exchanged in 3,286 deals.

Sterling Bank Plc shed -1.44 percent to lead the volume chart with 31.61million units traded, while MTNN (-3.26%) led the value chart in deals worth N2.60 billion. Market breadth closed negative at a 1.27-to-1 ratio with declining issues outnumbering advancing ones.

CHAMS (-8.70%) topped thirteen (13) others on the laggard’s log, while CORNERST (+8.70%) led ten (10) others on the leader’s table.

Meanwhile, to further drive growth and development in the Nigerian capital market, Nigerian Exchange Limited has urged the Central Securities and Clearing System Plc to further collaborate on synergistic initiatives just as it congratulated the firm on its 25th anniversary celebration.

NGX held a Closing Gong Ceremony at the Exchange House on Tuesday to commemorate CSCS’s 25th anniversary and celebrate the long-standing cooperation between both entities.

“CSCS as the depository, clearing and settlement manager occupies a critical position in the capital market,” said Temi Popoola, Chief Executive Officer NGX, while delivering his remarks. “Right from inception, CSCS and the Exchange have worked synergistically, driving up transaction volumes and boosting liquidity in the capital market,” he said.

Popoola recognised CSCS for its support for NGX’s initiatives and commended the management led by Haruna Jalo-Waziri for the company’s financial performance and creation of value for shareholders despite the challenging macroeconomic environment.

“We understand that amidst the uncertainty and tough business climate, you have shown that you can propel the company to greater heights.

“On this note, we at NGX look forward to more cooperation especially as we aim to champion the next stage of the market’s development which will involve transformational technologies like Blockchain. We hope to continue sharing resources, working on strategies that will further deepen our market, attract the younger generation of investors and enhance wealth creation in the country.”

The CEO, CSCS, Jalo-Waziri during his remarks recognised the efforts of the Exchange in starting the central clearing and settlements firm and structuring the company for consistent growth through its 25 years of existence.

He also noted the contributions of the NGX CEO and suggested different ways by which both organisations could collaborate in the coming year.

“We are optimistic that we can create more synergies to grow the market and create more value for the capital market and Nigerian economy,” Jalo-Waziri added.

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