Bulls Remains Control of Market amidst Profit Taking

Trading floor of the Nigeria Stock Exchange

The Nigerian equities sustained its positive performance despite activities of profit takers. Having appreciated by 1.6 per cent last week, some level of profit taking was envisaged when trading resumed yesterday.

Although the market closed with more price losers, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.07 per cent to close at 25,671.55.
A total of 22 stocks depreciated compared with 13 price losers. Mobil Oil Nigeria Plc and NAHCO Plc led the price gainers with 5.0 per cent apiece to close at N294 and N2.10 respectively. Fidson Healthcare Plc trailed with 4.4 per cent, while Guaranty Trust Bank Plc appreciated by 3.2 per cent.

Nestle Nigeria Plc and Dangote Flour Mills Plc chalked up 2.7 per cent and 2.5 per cent in that order. Other top price gainers include: N.E.M Insurance Plc(2.4 percent); Vitafoam Nigeria Plc (2.0 per cent); Transcorp Plc (1.4 per cent); and Sterling Bank Plc(1.3 per cent).

Conversely, United Capital Plc led the price losers’ chart with 5.0 per cent, trailed by Guinness Nigeria Plc and Custodian and Allied Plc, which depreciated by 4.9 per cent respectively. Neimeth International Pharmaceuticals Plc fell by 4.9 per cent, just as Julius Berger Nigeria Plc, CWG Plc and African Prudential Registrars Plc, FCMB Group shed 4.8 per cent in each.

Other top price losers were: UAC of Nigeria Plc (3.5 per cent); Fidelity Bank Plc(3.4 per cent); Dangote Sugar Refinery Plc (3.1 per cent);Portland Paints, UACN Property Development Company Plc and Cadbury Nigeria Plc (2.6 per cent each).

Sectoral performance analysis showed that all the sectors advanced apart from NSE Industrial Goods Index, falling by 0.3 per cent. The NSE Oil & Gas Index led the gainers on the back of appreciation in Mobil Oil (+5.0 per cent) and Oando Plc(+1.0 per cent). The NSE Banking Index trailed with 0.9 per cent gain following gains by GTBank(+3.2 per cent) and ETI (+1.0 per cent) offset the impact of selloffs in Zenith Bank (-0.9 per cent), Access Bank (-2.2 per cent) and United Bank for Africa (-0.6 per cent).

In the same vein, the NSE Consumer Goods Index added 0.4 per cent following gains by Nestle Nigeria (+2.7 per cent) and Dangote Flour Mills Plc (+2.5%).
Commenting on the market performance, analyst at Meristem Securities Limited said: “In our opinion, the day’s gain was driven by price appreciations recorded on some large cap stocks. We expect that these positive sentiments will linger for the rest of the week.”