Stock Market Down N317.7bn on Profit-taking in Aradel Holdings, 29 Others

Kayode Tokede

The stock market segment of the Nigerian Exchange Limited (NGX) depreciated by N317.7 billion yesterday as investors profit-taking rock Aradel Holdings Plc, and 29 others quoted companies on the Exchange. 

MTN Nigeria Communication Plc, Zenith Bank Plc, Oando Plc, Guaranty Trust Holding Company Plc (GTCO) and FBN Holdings Plc joined Aradel Holdings to witness decline in stock prices on the NGX as investors traded with caution.   

With decline in these blue-chip stocks, the market capitalisation that opened for trading at N59.039 trillion, dropped by N317.7 billion or 0.54per cent to close at N58.721 trillion yesterday. 

Consequently, the NGX All-Share Index closed yesterday at 96,907.73basis points, representing a decline of 524.29basis points or 0.54per cent from 97,432.02 basis points the market closed for trading last week. 

Thus, the NGX ASI Month-to-Date and Year-to-Date returns settled at -0.8per cent and +29.6per cent, respectively.

As measured by market breadth, market sentiment was negative, as 30 stocks lost relative to 17 gainers. John Holt and United Bank for Africa (UBA) recorded the highest price gain of 10 per cent each to close at N3.63 and N2.90 respectively, while Eunisell Interlinked followed with a gain of 9.96 per cent to close at N6.18, per share.

Sterling Financial Holdings Company appreciated by 5.96 per cent to close at N4.98, while PZ Cussons Nigeria rose by 4.55 per cent to close at N23.00, per share.

On the other hand, Caverton Offshore Support Group led the losers’ chart by 10 per cent to close at N1.80, per share. Aradel Holdings followed with a decline of 9.99 per cent to close at N401.10, while Oando lost 9.98 per cent to close at N80.70, per share.

FTN Cocoa Processors lost 9.90 per cent to close at N1.73, while Veritas Kapital Assurance depreciated by 9.86 per cent to close at N1.28, per share.

The total volume traded declined by 37.68 per cent to 1.224 billion units, valued at N14.234 billion, and exchanged in 10,386 deals.

Transactions in the shares of Consolidated Hallmark Holdings topped the activity chart with 567.248 million shares valued at N822.514 million. UBA followed with 240.757 million shares worth N7.288 billion, while Sterling Financial Holdings Company traded 122.306 million shares valued at N603.022 million.

Sovereign Trust Insurance traded 59.433 million shares valued at N33.878 million, while Access Holdings transacted 26.141 million shares worth N579.458 million.

Looking forward, United Capital Plc said “the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the high interest rates in the fixed income and money markets, we expect some bearish undertone to persist in the equities market as fixed income biased investors take advantage of the high yields in the fixed income space.

“Nevertheless, the bulls will remain incentivized to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns.”