Trading on the Nigerian equities market opened for the week on Monday, May 27 with a loss of 2.22 per cent, following declining investors’ appetite on MTN Nigeria Communications shares.
It was reported that the market capitalisation dipped N302 billion or 2.22 per cent to close at N13.299 trillion against N13.601 trillion achieved on Friday.
The drop in market indices was due to losses posted by MTN Nigeria Communications and Dangote Cement.
Also, the All-Share Index which opened at 30,881.29 shed 686.58 points or 2.22 per cent to close at 30,194.71.
MTN Nigeria Communications recorded the highest loss, shedding N10 to close at N130 per share.
Market analysts attributed MTN Nigeria loss to the controversy trailing the company since it listed on May 16.
MTN Nigeria Communications on May 25 said that it was being investigated by the Economic and Financial Crimes Commission (EFCC) over the listing of its shares on the NSE.
The company stated this in a statement posted on the exchange website signed by its Company Secretary, Uto Ukpanah.
The statement said that the company received a letter on May 23, from EFCC requesting information and documentation related to the listing of its shares on the NSE.
“MTN Nigeria has not been accused of any wrongdoing by the EFCC.
“We wish to reiterate that we received all regulatory approvals required to list our shares on the NSE, as publicly confirmed by NSE and the Securities and Exchange Commission (SEC).
“As a law-abiding and responsible corporate citizen, we are cooperating fully with the authorities.
“We are committed to good governance and to abiding by the extant laws of the Federal Republic of Nigeria,” said the statement.
Dangote Cement trailed with a loss of N8 to close at N192, while Forte Oil down by 35k to close at N27.45 per share.
UACN lost 10k to close at N6.35, while Oando also dropped to 10k to close at N4.30 per share.
Analysts at Afrinvest Limited stated that “In line with our expectation, market performance was negative as investors booked profit on large-cap stocks which rallied the previous week.
“We expect the negative performance to persist in the absence of any major catalyst.”
On the other hand, Unilever led the gainers’ table with a gain of N2.70 to close at N33.70 per share.
ETI followed with a gain of 95k to close at N11, while Dangote Flour gained 50k to close at N16.60 per share.
Zenith Bank appreciated by 20k to close at N19.20, while Guaranty Trust Bank added 20k to close N31.30 per share.
Similarly, the volume of shares traded closed lower with an exchange of 148.21 million shares valued at N2.22 billion in 3,654 deals, a decrease of 49.59 per cent.
This was in contrast with 294.06 million shares worth N6.63 billion exchanged in 4,352 deals.
Fidelity Bank Plc was the most active stock during the day, exchanging 28.28 million shares worth N49.49 million.
Access Bank followed with an account of 20.28 million shares worth N117. 36 million, while United Bank for Africa traded 20.06 million shares valued at N114.60 million.
MTN Nigeria exchanged 10.217 million shares worth N1.44 billion, while Zenith Bank traded 8.73 million shares valued at N168.32 million.