Stock investors lost N409.56bn on Wednesday as MTN Nigeria Communications Plc recorded the biggest decline amid its share offer to retail investors.
MTN had on Friday ended its equity book-build to institutional investors and launched an offer of up to 575 million shares held by its parent firm on Wednesday and priced each share at N169.
As of the end of trading on Wednesday, MTN’s share price slumped by 10 per cent to N171 from the N190 recorded the previous day.
The NGX All-Share Index fell by 1.81 per cent to 42,463.16 basis points from 43,248.05bps at the end of trading on Tuesday, while the market capitalisation dropped to N22.16tn from N22.57tn.
“Trading in the domestic equities market carried on yesterday’s bearish performance, as investors sold off MTN (-10 per cent),” said analysts at Cordros Capital in a report.
Analysts at Atlas Portfolios Limited said, “The Nigeria equities market kick-started the last month of in 2021 on a bearish note as investors dumped MTNN and 22 other stocks.”
Investor activities were mixed as the total volume traded climbed by 49.16 per cent while the total value traded dipped by 4.2 per cent.
A total of 335.48 million shares valued at N3.55bn were exchanged in 3,891 deals, compared to 224.91 million shares worth N2.36bn in 4,105 deals on Tuesday.
FBN Holdings Plc emerged the most traded stocks by volume and value, accounting for 39.94 per cent of the total volume of trades and 44.3 per cent of the total value of trades on the exchange.
Analysing by sectors, three of the five major indices closed negative, led by the NGX Banking (-1.15 per cent), NGX Consumer Goods (-0.14 per cent) and NGX Oil & Gas (-0.12 per cent).
The NGX Insurance (0.77 per cent) and NGX Industrial Goods (0.04 per cent) Indices closed higher.