Prof-taking Persist as Stock Market Depreciates by N37bn

Kayode Tokede

Investors profit-taking continued to dominate the stock market of the Nigerian Exchange Limited (NGX) as capitalisation extended losses for a second consecutive session, falling by N37 billion at the end of yesterday trading.

Accordingly, the All Share Index (ASI) shed 67.93 basis points or 0.12 per cent to close at 55,956.59 basis points from 56,024.52 basis points it opened for trading.

Consequently, the Month-to-Date and Year-to-Date returns moderated to 0.3per cent and 9.2 per cent, respectively.

Also, market capitalisation depreciated by N37 billion to close at N30.469 trillion from N30.506trilllion it opened for trading.

Across the sectors, the NGX Insurance Index rose by four per cent, NGX Oil & Gas Index gained one per cent and NGX Banking Index added one per cent, while the NGX Industrial Goods Index dropped by 0.7per cent and NGX Consumer Goods dipped by 0.1 per cent.

According to analysts at InvestmentOne Research, “The local bourse closed lower due to the bearish sentiment seen in the Industrial and Consumer Goods sectors.

“Going forward, we expect investor’s sentiment 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.”

However, market breadth closed positive, as 41 stocks gained relative to 13 losers. E-Tranzact International, Japaul Gold & Ventures, Prestige Assurance, Secure Electronic Technology, Sovereign Trust Insurance and Unity Bank recorded the highest price gain of 10 per cent each to close at N4.84, 44 kobo, 44 kobo, 33 kobo, 44 kobo and 66 kobo respectively, per share.

MRS Oil Nigeria followed with a gain of 9.96 per cent to close at N59.60, while Cornerstone Insurance rose by 9.90 per cent to close at N1.11, per share.

On the other hand, John Holt led the losers’ chart by 9.68 per cent, to close at N1.40, per share. Caverton Offshore Support Group followed with a decline of 7.14 per cent to close at N1.30, while Wapic Insurance declined by 6.52 per cent to close at 43 kobo, per share.

GlaxoSmithKline Consumer Nigeria depreciated by 5.30 per cent to close at N7.15, while Stanbic IBTC Holdings declined by 3.02 per cent to close at N45.00, per share.

The total volume traded increased by 33.74 per cent to 531.785 million units, valued at N7.682 billion, and exchanged in 6,061 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 177.476 million shares valued at N1.724 billion. NPF Microfinance Bank followed with 51.803 million shares worth N93.295 million, while Access Holdings traded 32.103 million shares valued at N412.987 million.

Zenith Bank traded 30.824 million shares valued at N863.315 million, while Dangote Sugar Refinery sold 19.303 million shares worth N407.969 million.