The Nigerian Exchange Limited (NGX) equities market segment on Monday started the week’s trading negatively with investors investment dropping by N54billion amid renewed profit hunting activity.
In summary, the All-Share Index (ASI) dropped by 103.61 basis points, representing a decline of 0.27 per cent to close at 38,545.30 basis points, while the overall market capitalisation value lost N54 billion to close at N20.089 trillion.
Analysing by sectors, the Industrial Goods (-1.2per cent), Insurance (-1.1per cent) and Oil & Gas (-0.1per cent) indices declined while the Banking (+0.1per cent) and Consumer Goods (+0.1per cent) indices recorded gains.
The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Fidson Healthcare, Lasaco Assurance, Oando, Ecobank Transnational Incorporated (ETI) and Dangote Sugar Refinery.
On stocks trading activities, analysts at United Capital Plc said, “We expect the bullish sentiments from the prior week to be sustained into the new week even as a single stock (Airtel Africa) masked positive sentiments from last week.
“Technically, the ASI has further room to trod higher before another profit taking-triggered retracement.”
However, the market sentiment, as measured by market breadth was positive, as 18 stocks gained, relative to 17 decliners.
Meyer Plc recorded the highest price gain of 8.77 per cent to close at 62 kobo, per share. Champion Breweries followed with a gain 6.06 per cent to close at N2.10, while Julius Berger Nigeria went up by 4.71 per cent to close at N20.00, per share.
Regency Alliance Insurance rose by four per cent to close at 52 kobo, while Ikeja Hotel gained 3.19 per cent to close at 97 kobo, per share.
On the other hand, Fidson Healthcare led the losers’ chart by 9.80 per cent to close at N4.60, per share. Lasaco Assurance followed with a decline of 9.33 per cent to close at N1.36, while FTN Cocoa Processors lost 9.09 per cent to close at 30 kobo, per share.
Mutual Benefits Assurance lost 8.89 per cent to close at 41 kobo, while Cornerstone Insurance shed 5.17 per cent to close at 55 kobo, per share.
The total volume of trades decreased by 5.18 per cent to 209.213 million units, valued at N1.763 billion, and exchanged in 3,390 deals.
Transactions in the shares of Access Bank topped the activity chart with 22.719 million shares valued at N193.989 million.
AXA Mansard Insurance followed with 16.701 million shares worth N15.046 million, while Zenith Bank traded 16.145 million shares valued at N384.584 million.
Mutual Benefits Assurance traded 14.685 million shares valued at N6.036 million, while Chams transacted 13.478 million shares worth N2.703 million.
According to analysts at Cordros Capital, “The equities market closed down today due to the losses recorded in the Industrial and Oil & Gas 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.”