Nigerian stocks made a big jump on Tuesday, adding a whopping N472 billion to market value after news of a 50% tariff hike approved by the Nigerian Communications Commission (NCC). This development sent investors rushing to grab shares of MTN Nigeria, sparking significant gains across the market.
MTN Nigeria, one of the biggest players in the market alongside Dangote Cement and Airtel Africa, saw its share price soar by 10%, closing at N256.3. Given that MTN accounts for 8.5% of the total market value, this jump had a wide-reaching impact, driving the main equity index up by 0.8%.
Other sectors also showed movement. The NGX Insurance Index stood out, delivering the best performance among five tracked sector indexes. It gained 1%, thanks to impressive growth in stocks like Universal Insurance and Royal Exchange Insurance.
Caution Amid Growth
Despite the positive headlines, market analysts are urging caution. United Capital, an investment bank, advised investors to stick to stocks with strong fundamentals and potential corporate actions. Sentiment remained mixed, as the market recorded 29 gainers against 28 losers, reflecting a tight race between positive and negative trades.
Key Market Highlights
The all-share index climbed by 767.6 basis points to hit 103,138, while market capitalization reached an all-time high of N63.3 trillion. Year-to-date, the market is now up by 0.2%, showing steady, albeit modest, progress.
Top Gainers
Leading the pack of gainers was MTN Nigeria, with its 10% rise creating ripple effects across the market. Other top performers included:
- SCOA: Up 9.93% to N2.99
- Omatek: Rose 9.88% to N0.89
- Universal Insurance: Gained 8.70% to N0.75
- CAP: Improved by 8.52% to N47.75
Top Losers
On the flip side, a few stocks took a hit. The biggest losers of the day included:
- National Sports Lottery: Dropped 9.88% to N0.73
- Abbey Building Society: Fell 9.09% to N3.30
- Sunu Assurance: Declined 8.21% to N6.15
- Deap Capital: Lost 7.08% to N1.05
- C&I Leasing: Slid 6.80% to N4.10
Final Thoughts
The tariff hike has clearly ignited a surge of interest in the stock market, particularly in MTN Nigeria. However, with mixed sentiment and ongoing volatility, investors should approach the market with care. Keeping an eye on stocks with strong fundamentals and potential corporate actions could be the key to navigating these exciting yet unpredictable waters.
