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Equities market depreciates  by 0.22% amid investors profit-taking

The bearish sentiments resurfaced on the equities market of the Nigerian Exchange limited (NGX) on Wednesday with a decline of 0.22 per cent as investors took profit off Unilever Nigeria and 23 others.

In summary, the NGX All-Share Index (ASI) dipped by 94.30 basis points, representing an decrease of 0.22 per cent, to close at 43,349.90 basis points. Similarly, the overall market capitalisation value declined by N49 billion to close at N22.623 trillion.

Sector performances were broadly negative today with the Oil and Gas (-0.82%), Consumer Goods (-0.66%) and Banking (-0.37%) sectors closing negatively, while the Industrial (+0.01%) sector closed positively.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; Unilever Nigeria, Ardova Plc, Guaranty Trust Holding Company (GTCO), Flour Mills of Nigeria and Access Bank.

Market breadth was negative as 24 stocks declined against 14 gainers. Associated Bus Company  recorded the highest price gain of 10 per cent to close at 33 kobo, per share.

Chams followed with a gain of 4.55 per cent to close at 23 kobo and Cutix went up 3.08 per cent to close at N3.35, per share.

Wema Bank  up by 2.35 per cent to close at 87 kobo, while Transnational Corporation of Nigeria (Transcorp) appreciated by 2.06 per cent to close at 99 kobo, per share.

On the other hand, Japaul Gold and Ventures and Neimeth International Pharmaceuticals led the losers’ chart by 9.09 per cent each to close at 40 kobo and N1.80 respectively, while Unity Bank followed with a decline of 8.47 per cent to close at 54 kobo, per share.

Consolidated Hallmark Insurance declined 8.06 per cent to close at 57 kobo, while Unilever Nigeria shed 7.53 per cent to close at N13.50, per share.

Meanwhile, the total volume of trades fell by 37.5 per cent to 264.789 million units, valued at N6.085 billion, and exchanged in 4,230 deals.

Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 68.612 million shares valued at N856.175 million.

International Breweries followed with 36.694 million shares worth N201.823 million, while GTCO traded 24.221 million shares valued at N644.044 million.

Unity Bank traded 9.509 million shares valued at N5.145 million, while Access Bank transacted 9.466 million shares worth N87.281 million.

According to analysts at InvestmentOne research, “The equities market closed in the red territory due to the losses recorded in the Oil and Gas, Consumer Goods and Banking sectors.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”

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