Equities market drops N123bn over investors profit-taking in Nestle, 25 others
By Kayode Tokede
The Nigerian Stock Exchange (NSE) equities market closed trading on Tuesday on a negative note, due to price depreciation posted by Nestle Nigeria and other 25 stocks.
Consequently, the benchmark index declined by 233.81 basis points or 0.59 per cent to 39,697.62 basis points from 39,931.63 basis points achieved on Monday.
Accordingly, the month-to-date and year-to-date losses increased to 0.30 per cent and 1.4 per cent, respectively.
Similarly, the overall market capitalisation which opened at N20.892 trillion dipped N123 billion to close at N20.769 trillion.
Sector performances showed that Consumer Goods (-3.86per cent), Oil & Gas (-0.88 per cent), Industrial (-0.41 per cent) and Banking (-0.12 per cent) sectors all closed negatively.
The market los3 was driven by price depreciation in large and medium capitalised stocks amongst which were Nestle, Flour Mills, Ardova Plc, Lafarge Africa and Unilever.
Market sentiment was negative with 26 laggards against 18 gainers.
Mutual Benefits Assurance led the losers’ chart in percentage terms, losing by 10 per cent to close at 36k per share.
Ardova followed with 9.97 per cent to close at N16.25, while Champion Breweries shed by 9.69 per cent to close at N2.05 per share.
The Initiates lost 9.62 per cent to close at 47k, while Sterling Bank lost 8.75 per cent to close at N1.46 per share.
Conversely, Academy Press dominated the gainers’ chart in percentage terms, improving by 9.76 per cent to close at 45k per share. PZ Cussons followed with 9.38 per cent to close at N5.25 per share.
Royal Exchange and Beta Glass Company rose by 8 per cent each to close at 27k and N54 per share, respectively. Regency Alliance Insurance chalked up 7.69 per cent to 28k per share.
Transactions in the shares of Zenith Bank topped the activity chart with 48.10 million shares valued at N1.24 billion.
United Capital followed with 20.24 million shares worth N121.97 million, while Mutual Benefits Assurance traded 19.44 million shares valued at N7.22 million.
Japaul Gold and Ventures sold 17.06 million shares valued at N10.48 million, while AXA Mansard Insurance transacted 8.97 million shares worth N9.38 million.
In all, the total volume of trades decreased by 59.1 per cent as investors bought and sold 222.57 million shares valued at N5.39 billion exchanged in 4,470 deals.
This was against a total of 543.99 million shares worth N1.89 billion achieved in 4,673 deals on Monday.
Analysts at Investment One research stated that, “The equities market closed down today due to the losses recorded in major 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.”
