Investors lose N40.47bn amid profit taking in Stanbic IBTC, others

By Kayode Tokede

Trading on the Nigerian Stock Exchange (NSE)returned to the negative territory on Tuesday with the market indicators dropping by N40.47billion, amid profit taking in Stanbic IBTC and Nigerian Breweries.

Specifically, the market capitalisation which opened at N21.224 trillion shed N40.47 billion or 0.19 per cent to close at N21.184 trillion

Also, the All-Share Index lost 75.32 basis points or 0.19 per cent to close at 40,494.35 basis points from 40,571.67 basis points recorded on Monday.

Consequently, the month-to-date loss increased to 4.5 per cent, while the year-to-date gain moderated to 0.60 per cent.

Sector performances were positive today with the Oil & Gas (+5.35 per cent), Banking (+1.81 per cent) and Industrial (+0.35 per cent) sectors all closed in the green, while Consumer Goods (-0.03 per cent) was the lone loser.

The loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Cornerstone Insurance, UPDC Real Estate Investment Trust, Consolidated Hallmark Insurance, Prestige Assurance and Wapic Insurance.

Cornerstone Insurance and UPDC Real Estate Investment Trust led the losers’ chart in percentage terms, dropping 10 per cent each to close at 54k and N5.40 per share, respectively.

Consolidated Hallmark Insurance trailed with 9.52 per cent to close at 38k per share.

Prestige Assurance lost 8.51 per cent to close at 43k, while Wapic Insurance dipped 8.33 per cent to close at 55k per share.

On the other hand, Learn Africa dominated the gainers’ chart in percentage terms with 9.28 per cent to close at N1.06 per share.

Ardova followed with 9.06 per cent to close at N18.05, while Multiverse Mining rose by 8.33 per cent to close at 26k per share. Wema Bank increased by 7.69 per cent to close at 70k, while Guinness Nigeria gained 7.32 per cent to close at N22 per share.

Transactions in the shares of Guaranty Trust Bank topped the activity chart with 46.16 million shares valued N1.43 billion.

FBN Holdings sold 35.34 million shares worth N256.89 million, while Dangote Sugar traded 26.82 million shares valued N510.53 million.

Zenith Bank accounted for 25.99 million shares worth N652.65 million, while Transcorp transacted 25.34 million shares valued N25.19 million.

In all, the total volume of shares traded rose by 72.8 per cent as investors bought and sold 356.43 million valued N5.76 billion in 5,040 deals. This was in contrast with 206.24 million shares worth N2.16 billion in 4,264 deals on Monday.

Analysts at Investment One research stated that, “The equities market closed up today due to the gains recorded in the most 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.”