Trading activities on the Nigerian Exchange Limited (NGX) equities market resumed for the week on a negative note with a decline of 0.36 percent, taking the negative sentiments to three consecutive trading sessions.
Market analysts noted that “The performance was buoyed by investors’ profit-taking sentiments in all the major sectors except oil & gas stocks.”
In summary, the NGX All-Share Index (ASI) declined by 136.30 basis points, representing a loss of 0.36 per cent to close at 37,857.89 basis points. Similarly, the overall market capitalisation value shed N71 billion to close at N19.725 trillion.
Performance across sectors was mixed, as losses in the Banking (-1.0 percent), Consumer Goods (-0.4 per cent), and Industrial Goods (-0.4 percent) indices reflected the overall market performance. On the other hand, the Oil and Gas (+0.1 percent) index gained, while the Insurance index closed flat.
The market downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Zenith Bank, BUA Cement, International Breweries and Lafarge Africa.
Analysts at United Capital Plc said that “This week, we expect some profit-taking in equities that rallied in the previous week. However, we expect general market sentiment to be positive.”
As measured by market breadth, market sentiment was positive, as 16 stocks gained, relative to 13 losers. Tripple GEE and Company recorded the highest price gain of 9.89 percent to close at N1.00, per share. Regency Alliance Insurance followed with a gain 8.89 percent to close at 49 kobo, while UPDC Real Estate Investment Trust went up by 7.44 percent to close at N1.30, per share.
FTN Cocoa Processors rose by 5.88 percent to close at 36 kobo, while mutual Benefits Assurance gained five percent to close at 42 kobo, per share. On the other hand,CWG Plc led the losers’ chart by 9.52 per cent to close at N1.14, per share. International Breweries followed with a decline of 5.66 percent to close at N5.00, while Champion Breweries lost 3.23 percent to close at N2.10, per share.
FBN Holdings lost 2.60 percent to close at N7.50, while AXA Mansard Insurance shed 2.25 per cent to close at 87 kobo, per share.
The total volume of trades declined by 22.6 percent to 187.244 million units, valued at NGN2.890 billion, and exchanged in 4,017 deals. Transactions in the shares of Zenith Bank topped the activity chart with 35.319 million shares valued at N870.866 million. Sovereign Trust Insurance followed with 14.155 million shares worth N3.946 million, while United Bank for Africa (UBA) traded 14.110 million shares valued at N106.098 million.
Mutual Benefits Assurance traded 13.544 million shares valued at N5.566 million, while Transnational Corporation of Nigeria (Transcorp) transacted 11.466 million shares worth N10.420 million.