Stock Market Depreciates by N83bn on Investors’ Profit-taking

Kayode Tokede 

The Nigerian Exchange Limited (NGX) stock market, yesterday witnessed profit-taking as the market capitalisation declined by N83 billion to commence first-day trading activities on weak sentiment by investors.

In summary, the NGX All-Share Index (ASI) declined by 155.01 basis points or 0.33 per cent to close at 46,687.85 basis points from 46,842.86 basis points.  

Consequently, the overall market capitalization value lost N83 billion to close at N25.170 trillion from N25.253trillion it opened for trading yesterday. 

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Guinness Nigeria, Lafarge Africa, PZ Cussons Nigeria and FBN Holdings (FBNH).

However, market breadth closed positive as 22 stocks gained relative to 19 decliners. Red Star Express recorded the highest price gain of 10 per cent to close at N2.97, per share. Nigerian Aviation Handling Company (NAHCO) followed with a gain 9.79 per cent to close at N4.71, while Meyer Plc gained 9.72 per cent to close at 79 kobo, per share.

Veritas Kapital Assurance appreciated by 9.52 per cent to close at 23 kobo, while UACN Property Development Company (UPDC) gained 9.21 per cent to close at 83 kobo, per share. On the other hand, Regency Alliance Insurance led the losers’ chart by 9.68 per cent to close at 28 kobo, per share. Japaul Gold and Ventures followed with a decline of 8.82 per cent to close at 31 kobo, while Wapic Insurance shed 6.82 per cent to close at 41 kobo,  per share.

Linkage Assurance shed six per cent to close at 47 kobo, while Jaiz Bank depreciated by 5.71 per cent to close at 66 kobo, per share.

Also, the total volume of trades declined by 14.7 per cent to 219.496 million units, valued at N1.931 billion, and exchanged in 5,168 deals. Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 28.943 million shares valued at N28.485 million. Fidelity Bank followed with 23.531 million shares worth N79.955 million, while United Bank for Africa (UBA) traded 15.086 million shares valued at N113.722 million.

Zenith Bank traded 12.580 million shares valued at N278.405 million, while Access Holdings transacted 11.958 million shares worth N116.201 million.

This week, analysts at United Capital Plc said that “We expect the equities market to remain relatively lull as investors continue to take profits off the table especially in the absence of any expected positive trigger. 

“However, we note that the market is approaching oversold territory which could spark some short-term bargain hunting. We retain a preference for investors to continue to seek selling opportunities to reduce exposure to the domestic equities market.”