Profit-taking Persists as Stock Market Sheds N555.7bn

Kayode Tokede

The domestic stock market yesterday dropped by N555.7 billion to sustain its down momentum for the third consecutive trading session this week.  

Capital market  analysts attributed the downward in domestic stock market to lucrative yield in money instruments.

Specifically, the market capitalisation that opened for trading at N155.973 trillion the previous day, dropped by N555.7 billion or 0.36per cent to close at N155.417 trillion.

This week alone the market capitalisation has dropped by N1.21 trillion from  N156.624 trillion to close at N155.417 trillion.  

Consequently, the Nigerian Exchange Limited All–tShare Index (NGX ASI)  closed for trading at 240,750.47basis points, about 860.76basis points or 0.36 per cent decline from 241,611.23 basis points the stock market opened for trading as the Month-to-Date and Year-to-Date returns settled at 1.9per cent and +54.7per cent, respectively.

Sectoral performance was mixed as the NGX Oil & Gas (-4.6per cent), Insurance (-0.9per cent), and NGX Consumer Goods (-0.3per cent) indices declined, while the NGX Banking (+0.5per cent) index advanced. The NGX Industrial Goods index closed flat.

However, the N555.7 billion drop was driven by investors’ profit–taking in Aradel Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and Ecobank Transnational Incorporated Plc.

Following the decline in the benchmark index, investor sentiment remained relatively flat  with 27 stocks recorded gains, and declined. 

Haldane McCall recorded the highest price gain of 10 per cent to close at N3.52, per share.  Wapic Insurance Pllc followed with a gain of 8.44 per cent to close at N2.44, while UACN Plc  appreciated by 6.56 per cent to close at N177.85, per share.

AVA Capital Plc appreciated by 6.29 per cent to close at N7.60 per share, while Caverton Plc rose by 5.32 per cent to close at N4.95 kobo, per share.

On the other hand, International Energy Insurance led the losers’ chart by 10 per cent to close at N4.77, per share. Aradel Holdings followed with a decline of 9.99 per cent to close at N1,374.20, while Universal Insurance Plc lost 9.41 per cent to close at N0.77, per share.

Red Star Express Plc declined by 9.26 per cent to close at N14.70, while Royal Exchange Plc dipped by 8.62 per cent to close at N1.06, per share.

The total volume traded advanced by 177.7per cent to 1.19 billion units, valued at N37.82 billion, and exchanged in 34,546 deals. 

Fortis Global Insurance was the most traded stock by volume at 610.68 million units, while MTN Nigeria Communications  was the most traded stock by value at N8.12 billion.

On market outlook, Imperial Asset Managers Limited said, “we expect the equities market to remain cautious and selective in the near term. The continued decline in the ASI and persistent negative market breadth suggest that profit-taking remains evident across the market.

“However, the increase in transaction value, despite weaker overall volume, indicates that investors are still taking positions in selected high-value and fundamentally strong stocks.

“Overall, sentiment remains weak in the short term, but selective buying opportunities may emerge in quality counters as investors continue to reposition.”