Profit-taking Persist as Stock Market Decline by N18bn

Kayode Tokede

Profit-taking activities continued yesterday on the stock market of the Nigerian Exchange Limited (NGX), dropping by N18 billion.
The NGX All Share Index (ASI) decreased by 34.06 basis points or 0.07 per cent to close at 49,642.69 basis points. Similarly, the market capitalisation lost N18 billion to close at N26.776 trillion.

The stock market downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communications (MTNN), Cadbury Nigeria, Unilever Nigeria, Nigerian Aviation Handling Company (NAHCO) and FCMB Group.

As measured by market breadth, market sentiment was mixed as an equal number of 13 stocks gained and lost. e-Tranzact International recorded the highest price gain of 9.65 per cent to close at N2.50, per share. Sovereign Trust Insurance followed with a gain 7.69 per cent to close at 28 kobo, while Vitafoam Nigeria appreciated by 7.27 per cent to close at N23.60, per share.

Japaul Gold and Ventures went up by 6.45 per cent to close at 33 kobo, while Consolidated Hallmark Insurance appreciated by 4.84 per cent to close at 65 kobo, per share.

On the other hand, Courteville Business Solutions led the losers’ chart by 7.69 per cent to close at 48 kobo, per share.
FCMB Group followed with a decline of 4.06 per cent to close at N3.07, while UACN Property Development Company went down by 3.77 to close at N1.02, per share.

NAHCO lost 3.72 per cent to close at N5.70, while Cadbury Nigeria shed 2.99 per cent to close at N13.00, per share.

Also, the total volume traded declined by 45.9 per cent to 125.950 million units, valued at N3.073 billion, and exchanged in 4,145 deals.

Transactions in the shares of Mutual Benefits Assurance topped the activity chart with 25.337 million shares valued at N8.241 million. Fidelity Bank followed with 10.226 million shares worth N31.068 million, while Access Holdings traded 8.991 million shares valued at N73.675 million.

FBN Holdings (FBNH) traded 7.708 million shares valued at N84.295 million, while MTNN transacted 7.274 million shares worth N1.451 billion.
Analysts at Investment One research explained that the stock market closed southwards due to the loss recorded in the banking sector.

“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,” the firm said in its report.