Equities Shed N84bn as Profit-taking Persists

11 Jan 2013

Views: 1,048

Font Size: a / A



The Nigerian equities market shed N84 billion as profit-taking by investors entered the second day, causing the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to close 0.9 per cent lower.

After days of price rally, which saw some equities appreciating by over 50 per cent, investors moved in last Wednesday to sell and reap part of the capital gains. The high supply of equities without corresponding demand led to a decline of N43 billion in market capitalisation and 0.46 per cent in the ASI on that day.
Thursday  the profit-taking continued leading to a further erosion in the gains recorded in the first week of the year. While equities shed N84 billion to close at N9.171 trillion, down from N9.255 trillion, the ASI depreciated by 0.9 per cent to close at 28,695.59.

Despite the decline, the market’s year-to-date (YTD) growth still stood at 2.2 per cent or N197 billion. Although the profit-taking is not expected to last long due to positive full-year results expected from companies, the negative trend was predicted before it actually began.
For instance, analysts at Cordros Capital Limited had said the market would slow as profit-taking activities are likely to take toll. Similarly, analysts at Partnership Investment Company Plc had said: “Mild profit taking is expected in the coming week but we do not envisage this distorting current trend.”

In all, 28 stocks depreciated in price compared with 19 stocks that added value. UACN Property Development Company Plc led the price losers with N1.33 to close at N12.41 per share trailed by Zenith Bank Plc, which went down by N1.30 to close at N19.70 per share.
GTBank Plc, FBN Holdings Plc and Access Bank Plc shed N0.90, N0.46 and N0.37 respectively.

On the other, Nigerian Breweries Plc led the price gainers with N2.45 to close at N148.10 per share. Conoil Plc garnered N1.02 to be at N21.52, just as UAC of Nigeria Plc and Julius Berger Nigeria Plc chalked up N0.51 and N0.46 in that order.
Market turnover stood at 407.241 million shares worth N3.512 billion exchanged in 6,200 deals.

Tags: Business, Equities, Featured, Nigeria, Profit-taking

Comments: 0


Add your comment

Please leave your comment below. Your name will appear next to your comment. We'll also keep you updated by email whenever someone else comments on this page. Your comment will appear on this page once it has been approved by a moderator.

comments powered by Disqus