Stock Market Ends Positive Trend, Drops by N297bn

Kayode Tokede

The stock market yesterday, ended its four-day positive trend as the overall market capitalization depreciated by N297 billion over investors profit-taking in MTN Nigeria Communications (MTNN), BUA Cement, and 26 others.

Specifically, the stock price of MTN Nigeria was down by 2.44 per cent to N240 per share, while BUA Cement depreciated by 1.87 per cent to N105 per share.

Zenith bank Plc also declined by 1.16 per cent to N34 per share as GTCO tumbled by 1.13 per cent to N35 per share.

The Nigerian Exchange Limited All-Share Index (ASI) shed 539.48 basis points, representing a decline of 0.76 per cent to close at 70,042.28 basis points from 70,581.76 basis points it opened for trading.

Also, market capitalisation dipped by N297 billion to close at N38.481 trillion from N38.778trillion it opened for trading.

Sectoral performance was bearish as the NGX Banking depreciated by 0.86per cent, NGX Industrial down by 0.64 per cent and NGX Consumer Goods dropped by 0.19 per cent while the NGX Oil & Gas sector closed flat.

As measured by market breadth, market sentiment was negative, as 26 stocks gained relative to 28 losers. Omatek Ventures emerged the highest price gainer of 10 per cent to close at 55 kobo, while Academy Press followed with a gain of 9.83 per cent to close at N1.90, per share.

Prestige Assurance and Tantalizers rose by 9.76 per cent each to close at 45 kobo each, while DAAR Communications appreciated by 8.70 per cent to close at 25 kobo, per share. On the other side, Chams Holding Company led others on the losers’ chart with 9.84 per cent to close at N2.20, per share. International Breweries followed with a decline of 8.79 per cent to close at N4.15, while R.T. Briscoe Nigeria declined by 8.51 per cent to close at 43 kobo, per share.

Thomas Wyatt Nigeria lost 8.42 per cent to close at N3.70, while FBNH depreciated by 8.14 per cent to close at N18.05, per share.

The total volume traded decreased by 12.68 per cent to 525.457 million units, valued at N6.089 billion, and exchanged in 8,396 deals. Transactions in the shares of Japaul Gold and Ventures led the activity with 92.015 million shares worth N124.950 million. Fidelity Bank followed with account of 67.033 million shares valued at N557.365 million, while United Bank for Africa (UBA) traded 46.313 million shares valued at N971.342 million.

FCMB Group traded 42.617 million shares worth N262.590 million, while Chams Holding Company traded 30.951 million shares worth N72.881 million.

Analysts at InvestmentOne Research stated that the stock market ended lower yesterday driven by the losses printed across major 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,” the firm said.