Profit-taking Persist as Market Cap Decline by N34bn

Kayode Tokede

Investors’ profit-taking activities continued yesterday on the Nigerian Exchange Limited stock market as market capitalisation declined by N34 billion on sell-offs in 23 stocks.

Specifically, the overall market capitalisation value declined by N34 billion to close at N22.589 trillion yesterday from N22.623 trillion it opened for trading.

Consequently, the NGX All-Share Index (ASI) dipped by 63.93 basis points, representing a decline of 0.15 per cent, to close at 43,285.97 points from 43,349.90 basis points it opened for trading yesterday.

The decline lowered the stock market Month-to-Date and Year-to-Date gains at +3.0per cent and +7.5per cent respectively.

On sectors, the Insurance (+0.6per cent) and Consumer Goods (+0.1per cent) indices gained, while the Oil & Gas (-0.2per cent), Banking (-0.2 per cent) and Industrial Goods (-0.1per cent) indices declined.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; FBN Holdings (FBNH), Lafarge Africa, UAC of Nigeria (UACN), Nigerian Exchange Group (NGXGroup) and Guaranty Trust Holding Company (GTCO).

As measured by market breadth, market sentiment was negative, as 23 stocks declined relative to 12 gainers. eTranzact International and Vitafoam Nigeria recorded the highest price gain of 10 per cent each to close at N2.09 and N20.90 respectively, while Academy Press followed with a gain of 9.09 per cent to close at 36 kobo, per share.

Jaiz Bank up by 6.45 per cent to close at 66 kobo, while AXA Mansard Insurance appreciated by 6.33 per cent to close at N2.35, per share. On the other hand, Chams Plc led the losers’ chart by 8.70 per cent to close at 21 kobo, per share. Regency Alliance Insurance followed with a decline of 7.50 per cent to close at 37 kobo, while Unity Bank declined by 7.41 per cent to close at 50 kobo, per share.

FBNH shed 6.50 per cent to close at N11.50, while Associated Bus Company shed 6.06 per cent to close at 31 kobo, per share.

The total volume of trades declined by 20.5 per cent to 210.545 million units, valued at N2.606 billion, and exchanged in 3,423 deals.

Transactions in the shares of Sterling Bank topped the activity chart with 60.191 million shares valued at N90.310 million.

eTranzact International followed with 14.084 million shares worth N29.436 million, while Transnational Corporation of Nigeria (Transcorp) traded 13.136 million shares valued at N12.703 million.

GTCO traded 10.945 million shares valued at N288.454 million, while Jaiz Bank transacted 10.429 million shares worth N6.947 million.

Analysts at Afrinvest Limited said that “In the final trading session, we expect an extension of the prior day’s bearish performance in the absence of a positive driver.”

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