Stock Market Down N90bn on Investors’ Profit-taking

Kayode Tokede

The domestic stock market of the Nigerian Exchange Limited (NGX) yesterday opened the week on a negative note with major market index dropping by 0.24 per cent.

The All-Share Index (ASI) lost 162.76 basis points or 0.24 per cent to close at 67,037.93 basis points. Also, market capitalisation declined by N90 billion to close at N36.830 trillion.

Accordingly, the Month-to-Date and Year-to-Date returns moderated to one per cent and 30.8per cent, respectively.

The downturn was driven by price depreciation in large and medium-capitalised stocks amongst which are; Okomu Oil, Stanbic IBTC Holdings, Eterna, Cadbury Nigeria and Oando.

Analysts at InvestmentOne Research said, “The local equities market declined due to the losses printed in the Banking and Consumer Goods sectors.”

They expressed further that, “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.”

Sectoral performance was mixed as the  NGX  Banking added 0.85 per cent and NGX Consumer Goods appreciated by 0.37per cent, while the NGX Industrial depreciated by 0.06per cent, while the NGX Oil & Gas sector closed flat.

As measured by market breadth, market sentiment was negative, as 22 stocks lost relative to 19 gainers. Royal Exchange emerged the highest price gainer of 8.51 per cent to close at 51 kobo, per share.  Consolidated Hallmark Insurance followed with a gain of 6.96 per cent to close at N1.23, while NASCON Allied Industries advanced by 5.45 per cent to close at N58.00, per share.

Flour Mills Nigeria rose by 4.20 per cent to close at N31.00, while Dangote Sufar Refinery appreciated by 3.13 per cent to close at N62.60, per share. On the other side, Sovereign Trust Insurance and Stanbic IBTC Holdings led others on the losers’ chart with 10 per cent each to close at 36 kobo and N72.00 respectively, while Okomu Oil followed with a decline of 9.96 per cent to close at N236.80, per share.

Oando declined by 9.24 per cent to close at N8.35, while Omatek Ventures shed 8.70 per cent to close at 42 kobo, per share. Meanwhile, the total volume of trades declined by 3.6 per cent to 216.07 million units, valued at N3.55 billion, and exchanged in 5,965 deals.

Transactions in the shares of United Bank for Africa (UBA) led the activity with 32.621 million shares worth N579.345 million. Fidelity Bank followed with account of 28.954 million shares valued at N238.066 million, while AIICO Insurance traded 15.607 million shares valued at N10.618 million.

Dangote Sugar Refinery traded 15.607 million shares worth N10.618 million, while Transnational Corporation (Transcorp) traded 10.504 million shares worth N65.424 million.