Stock Market Drops by N577bn on Investors Profit-taking Activity
Kayode Tokede
The Nigerian stock market yesterday halted its positive momentum after 11-day consecutive gains, yielding to investors’ profit-taking activities as the market capitalisation dropped by N577 billion.
The Nigerian Exchange Limited All Share Index (NGX ASI) depreciated by 899.50 basis points, or 0.47 per cent to close at 189,362.94 basis points,causing the Month to Date and Year to Date returns to taper to 14.5per cent and 21.7per cent, respectively.
Also, market capitalisation declined by N577 billion to close at N121.553 trillion.
Sectoral performance was largely negative as the NGX Banking (-3.7per cent), NGX Insurance Index (-0.6per cent), NGX Industrial Goods Index (-0.5per cent) and NGX Oil & Gas Index (-0.1per cent) while the NGX Consumer Goods Index (+2.5per cent) advanced.
Despite the broad market decline, sentiment remained mildly positive, with market breadth closed positive as 44 stocks advanced compared to 40 decliners. ABC Transports recorded the highest price gain of 9.94 per cent to close at N9.07, per share. Zichis Agro Allied Industries followed with a gain of 9.93 per cent to close at N13.06, while Red Star Express grew by 9.87 per cent to close at N29.50, per share.
Meyer up by 9.81 per cent to close at N22.95, while Japaul Gold & Ventures rose by 9.78 per cent to close at N3.03, per share.
On the other hand, Zenith Bank, MeCure Industries and Skyway Aviation Handling Company led the losers’ chart by 10 per cent each to close at N80.55, N93.60 and N117.00 respectively, per share.
R.T. Briscoe followed with a decline of 9.95 per cent to close at N14.12, while Tripple Gee & Company lost 9.77 per cent to close at N6.00, per share.
Also, the total volume traded declined by 8.63 per cent to 1.200 billion units, valued at N60.193 billion, and exchanged in 86,607 deals. Transactions in the shares of Access Holdings topped the activity chart with 103.486 million shares valued at N2.717 billion. Zenith Bank followed with 93.097 million shares worth N8.007 billion, while Japaul Gold & Ventures traded 73.789 million shares valued at N223.579 million.
First HoldCo traded 54.323 million shares valued at N2.643 billion, while Secure Electronic Technology sold 45.921 million shares worth N83.297 million.
On market outlook, Imperial Asset Managers Limited said, “following 0.47 per cent pullback, we expect market performance to remain mixed in the near term. As investors lock in profits from the recent massive rallies, we advise cautious positioning and recommend bargain-hunting in fundamentally sound, dividend-paying stocks that may have dipped to attractive entry levels.”
