Equities market drops N118bn on renewed profit-taking
By Kayode Tokede
Investors on the Nigerian Stock Exchange (NSE) equities market on Tuesday lost N118 billion as the market reverse its previous session gains on renewed profit-taking.
In summary, the All-Share Index (ASI) dipped by 226.26 basis points, representing a decrease of 0.57 per cent to close at 39,267.11 basis points.
While the overall market capitalisation value lost N118 billion to close at N20.545 trillion.
Sector performance was somewhat positive with the Banking (+0.94 per cent) and Consumer Goods (+0.07 per cent) sectors closing in the green, while the Industrial sector (-1.90 per cent) closed in red. Conversely, Oil & Gas sector closed flat.
The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Dangote Cement, Julius Berger Nigerian, Ecobank Transnational Incorporated (ETI), Fidelity Bank and International Breweries.
As measured by market breadth, market sentiment was positive, as 22 stocks gained, relative to 15 losers. Livestock Feeds recorded the highest price gain of 9.66 per cent to close at N41.93, while Cornerstone Insurance and Courteville Business Solutions followed with a gain 9.09 per cent each, to close at 60 kobo and 24 kobo, respectively, per share.
NPF Microfinance Bank up by 8.33 per cent to close at N1.95, while Royal Exchange appreciated by 7.69 per cent to close at 28 kobo, per share.
On the other hand, Regency Alliance Insurance led the losers’ chart by 9.09 per cent to close at 30 kobo, per share. Prestige Assurance followed with a decline of 8.89 per cent to close at 41 kobo, while Daar Communications shed eight per cent to close at 23 kobo, per share.
ETI lost 4.72 per cent to close at N5.05, while Sovereign Trust Insurance shed 4.17 per cent to close at 23 kobo, per share.
The total volume of trades decreased by 35.6 per cent to 336.126 million units, valued at NGN3.269 billion, and exchanged in 4,394 deals.
Transactions in the shares of Union Bank of Nigeria (UBN) topped the activity chart with 78.889 million shares valued at N418.14 million.
Courteville Business Solutions followed with 43.908 million shares worth N10.533 million, while Guaranty Trust Bank traded 28.971 million shares valued at N955.089 million.
Zenith Bank traded 24.908 million shares valued at N560.466 million, while Transnational Corporation of Nigeria (Transcorp) transacted 22.621 million shares worth N17.961 million.
According to analysts at Investment One research, “The equities market closed down today due to the losses recorded in the Industrial sector.
“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.”
