In the just concluded week, the Nigerian stock market rebounded following the listing by introduction of 20.4 billion shares of MTN Nigeria shares at N90 a share and a par value N0.02.
Also, within two trading sessions, its share price gained 20% to lift the local bourse marginally out of red territory. The overall market performance measure, NSE ASI, closed northwards at 28,871.93 points, having gained 153 basis points w-o-w.
Despite MTNN lifting the domestic bourse’s main gauge, all of the five sub-indices closed in negative territory: NSE Banking, NSE Insurance, NSE Consumer Goods, NSE Oil/Gas and NSE Industrial indices fell by 4.31%, 3.35%, 4.13%, 2.32% and 3.88% to 354.30 points, 114.66 points, 641.87 points, 258.76 points and 1,054.20 points respectively.
Meanwhile, market activities remained weak as total deals and transaction volumes plunged by 11.85% and 21.52% to 18,277 deals and 1.16 billion shares respectively; however, Naira votes increased by 62.46% to N17.67 billion partly due to transactions on MTNN shares and other high caps. In the new week, we expect the local equities market to close marginally in green territory as the euphoria of the listing of the telecoms giant is likely to be sustained.
More so, we expect investors to take advantage of the general low share prices in the market, especially in the banking sector, in order to maximize their returns