Stock Market Decline on Profit-taking in NB, GTCO

Kayode Tokede

The stock market commenced this week on a negative note, dropping by 0.01 per cent as investors’ profit-taking in Nigerian Breweries (NB), Guaranty Trust Holding Plc (GTCO), seven others  undermined the market’s performance.

Specifically, the NGX All-Share index was down by 5.40 basis points or 0.01 per cent to 49,676.75 basis points from 49,682.15 basis points, as the market capitalisation dipped by N2.91billion to close at N26.794trillion from N26.797trillion the stock market opened for trading this week.

Accordingly, the Month-to-Date loss and Year-to-Date gain settled at -1.4per cent and +16.3per cent, respectively.

Analysing by sectors, the NGX   Consumer Goods index dropped by 0.3per cent as NGX Insurance index depreciated by 0.3per cent, and NGX Oil & Gas index was down by 0.1per cent, while the  NGX Banking index added 0.3per cent advanced.

The decline in NGX consumer goods index was due to 2.86 per cent or N1.35 decline in NB’s stock price  to N45.80 from N47.15 it opened for trading, while the NGX banking decline can be attributable to drop in GTCO’s stock price to N19.90 from N20.00, while Fidelity Bank Plc depreciated by 0.65 per cent or N0.02 to N3.04 from N3.06 per share it opened for trading.

However, market breadth closed positive as 18 stocks gained relative to eight losers. Trans Nationwide Express recorded the highest price gain of 9.52 per cent to close at 69 kobo, per share. UPDC Real Estate Investment Trust (UPDCREIT) followed with a gain of 9.23 per cent to close at N3.55 and Multiverse Mining & Exploration went up 9.17 per cent to close at N2.62, per share.

Vitafoam Nigeria up by 8.37 per cent to close at N22.00, while Courteville Business Solutions appreciated by 8.33 per cent  to close at 52 kobo, per share. On the other hand, Caverton Offshore Support Group led the losers’ chart by 9.57 per cent to close at N1.04, per share.  John Holt followed with a decline of 8.99 per cent to close at 81 kobo, while Japaul Gold and Ventures lost 8.82 per cent to close at 31 kobo, per share.

AIICO Insurance declined 3.64 per cent to close at 53 kobo, while Nigerian Breweries shed 2.86 per cent to close at N45.80, per share.

The total volume traded increased by 20.38 per cent to 232.945 million units, valued at N2.186 billion, and exchanged in 4,425 deals. Transactions in the shares of Jaiz Bank topped the activity chart with 40.421 million shares valued at N36.172 million. Access Holdings followed with 35.805 million shares worth N293.556 million, while FBN Holdings traded 23.064 million shares valued at N251.379 million.

Mutual Benefits Assurance traded 19.935 million shares valued at N6.059 million, while Zenith Bank transacted 12.450 million shares worth N273.664 million.

Analysts at Cordros Research in its weekly market report said, “We expect the choppy trading pattern that played out this week to persist as investors continue to take positions in stocks with attractive dividend yields.

“That said, we expect earnings from the big banks to drive buying sentiments on the bourse, as the declaration of interim dividends may likely accompany the results.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the fragility of the macroeconomic environment remains a significant headwind for corporate earnings.”

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