Equities market sheds N98bn over profit-taking in Dangote Cement, UBA, 13 others

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The equities market of the Nigerian Stock Exchange (NSE) depreciated by N98 billion on Tuesday on the back drop of investors profit-taking in Dangote Cement Plc, United Bank for Africa Plc (UBA), and 12 other companies.

Following investors profit-taking for the second trading session of the week, the market capitalization of the Exchange depreciated from N13.354 trillion the market opened for trading to N13.256 trillion the market closed for trading.

This also down the All-Share Index to a lost of 0.73 per cent, closing at  30,099.83 basis points from 30,322.19 basis points.

According to NSE, the market decline performance was mainly due to the profit-taking in Sovereign Insurance Plc that dropped by eight per cent or N0.02 from N0.25 to N0.23 while Japaul Plc dropped by 7.41 per cent or N0.02 to N0.25.

Other losers are Dangote Sugar plc that depreciated by 4.35 per cent or N0.50 to N11.00; Mobil Plc, 3.82 per cent or N6.50 to N163.50 from N170 it opened for trading on Tuesday.

Others major losers according to NSE include Dangote Cement that tumbled by 2.12 per cent or N4.00 from N189 to N185 while shares of MTN Nigeria dropped by 0.74 per cent or N1.00 to close at N135.

Zenith Bank Plc also depreciated by 0.49 per cent or N0.10 to N20.15 while United bank for Africa sheds 1.59 per cent or N0.10 to N6.20 per share on Tuesday.

On the flip side, Unilever Nigeria Plc top the gainers chart on Tuesday, gaining 8.22 per cent or N2.35 to N30.95 while ABC transport Plc added 7.14 per cent or N0.02 to close at N0.30 from N0.28 per share.

A non-interest bank, Jaiz Bank Plc also rose by 4.35 or N0.02 to N0.48 while Wapic Insurance plc grew by 2.50 per cent or N0.01 to close at N0.41 on Tuesday.

Sector performances were negative on Tuesday as losses were recorded in Industrial index by -1.10per cent, Oil & Gas Index depreciated by 0.85per cent, Banking index was down by 0.20per cent and Consumer Goods index depreciated by 0.02per cent.

In terms of activity levels, while total volume declined by six per cent, total value increased by one per cent compared to Monday’s transactions, as investors exchanged over 23million units of shares worth over N3.52billion. WAPIC (+2.50per cent) was the most actively traded stock with over 50million units of shares worth about  N20million.

Analysts at investmentOne Research said, “The equities market closed down today due to losses across all sectors. However, we still maintain that prices at current levels present decent entry opportunities for investors with a medium to long term horizon.”

On currency, at the Investors & Exporters Foreign Exchange (I & EFX) window, while the Naira lost by 0.21per cent and 0.01 per cent against the Pounds and Euro to close at N458.37 and N407.79 respectively, it remained flat against the dollar at N360.63.

At the Parallel market, the Naira closed flat at N360, N463 and N402 against dollar, pounds and Euro respectively.

However, Money market rates declined today as Overnight and Open Buy Back shed 321basis points and 357basis points to close at 9.50per cent and 8.71per cent respectively. The decline in rates may be due to the refunds from FX auction which could have improved system liquidity.

The bond market was negative today as yields increased across most tenors. Consequently, the yields on the 5yr, 7yr and 10yr benchmark bonds increased by four basis points, five basis points and three basis points to close at 14.57per cent , 14.71per cent and 14.62per cent respectively

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