Market cap drops further by N160bn on profit taking

By Kayode Tokede

The Nigerian equities market yesterday closed trading activities on a bearish note,  extending the losing streak to three consecutive trading session.

The negative performance was buoyed by investors’ sell-off sentiment in all the major market sectors, excluding the Insurance sector that increased by 3.24 per cent, as investors patiently await the release of more Half Year results of listed companies.

Specifically, the overall market capitalisation value dipped by N160 billion to close at N20.051 trillion.

Also, Nigerian Exchange Limited All-Share Index (ASI) dropped by 306.21 basis points, representing a decline of 0.79 per cent, to close at 38,484.82 basis points points.

The market negative performance was driven by price depreciation in large and medium capitalised stocks amongst which are; BUA Cement, UAC of Nigeria (UACN), Flour Mills of Nigeria, NASCON Allied Industries and Guaranty Trust Bank Holding Company (GTCO).

Also, investor sentiment as measured by market breadth closed negative, as 22 stocks lost, while 17 gained. Tripple Gee & Company recorded the highest price gain of 10 per cent to close at 99 kobo, per share. Regency Alliance Insurance followed with a gain 9.76 per cent to close at 45 kobo, while Consolidated Hallmark Insurance went up by 9.26 per cent to close at 59 kobo, per share.

Prestige Assurance rose by 8.89 per cent to close at 49 kobo, while Academy Press gained 8.57 per cent to close at 38 kobo, per share. On the other hand, Oando led the losers’ chart by 9.70 per cent to close at N4.75, per share. UACN followed with a decline of 8.93 per cent to close at N10.20, while Linkage Assurance lost 7.69 per cent to close at 60 kobo, per share.

FTN Cocoa Processors lost 7.55 per cent to close at 49 kobo, while UPDC Plc shed 5.56 per cent to close at N1.19, per share.

The total volume of trade rose by 9.5 per cent to 259.968 million units, valued at N1.982 billion, and exchanged in 4,975 deals. Transactions in the shares of Oando topped the activity chart with 56.252 million shares valued at N288.491 million. GTCO followed with 15.287 million shares worth N444.928 million, while Jaiz Bank traded 14.899 million shares valued at N9.219 million.

Fidelity Bank traded 14.393 million shares valued at N34.244 million, while Wema Bank transacted 12.215 million shares worth N10.084 million.

Analysts at Afrinvest Limited stated that “In the final trading session, we anticipate an extension of the sell pressure as investors continue to adjust their holdings in response to the recent FX regulation. Albeit, we see a potential for bargain hunting in the market.”