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Stock market index plunges 0.9% amid profit booking

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Nigerian Stock Exchange

The downward pull, occasioned by profit booking on the trading floor of the Nigerian Stock Exchange (NSE), continued yesterday, as more blue chip stocks joined the league of losers, resulting to a further slide in the All-share index by 0.9 per cent.

Yesterday, the All-share index plunged by 426.45 points or 0.9 per cent from 44,389.85 recorded on Tuesday to 43,963.40. The market capitalisation of listed equities fell by N143billion from N15.902trillion to N15.7559trillion.

Analysts at Investdata Consulting argued that the pull back movement of stocks due to profit taking may not last long with the earnings reporting season around the corner.

“The pullback due to profit booking has signalled a wave for correction, which may not last long, especially with the earnings reporting season around the corner. It must be noted that investor expectations of these numbers have been priced into stock prices on the exchange, especially judging from the Q3 financials.

“It is therefore earnings surprises from these companies, particularly those in the banking, industrial and consumer goods sectors that will trigger another uptrend, just as disappointments would likewise lead to further correction in the share prices of the affected stocks.

This is the reason investors should stay with fundamentally sound stocks that have good dividend history and had recorded earnings uptrend in 2017.”

Further breakdown of yesterday’s transactions showed that Guaranty Trust Bank emerged the day’s highest price loser with 1.10 kobo to close at N50.90 per share, while Zenith Bank followed with 1.00 kobo to close at N31.00 per share. Cadbury shed 0.98 kobo to close at N15.01 per share. FBN Holdings depreciated by 0.52 kobo to close at N12.50 per share.

National Salt Company of Nigeria lost 0.50 kobo to close at N19.50 per share. Unilever lost 0.41 kobo to close at N46.00 per share. Julius Berger shed 0.40 kobo to close at N30.00 per share. Ecobank TransNational Incorporated depreciated by 0.39 kobo to close at N19.81 per share.

Union Bank lost 0.37 kobo to close at N7.29 per share. Fidelity Bank dropped 0.34 kobo to close at N3.23 per share. First City Monument Bank lost 0.33 kobo to close at N3.07 per share. Diamond Bank shed 0.31 kobo to close at N2.92 per share.

Airservice and Eterna Oil each fell 0.28 kobo to close at N5.38 and N5.46 per share respectively. Dangote Flourmills dropped 0.27 kobo to close at N14.73 per share. Sterling Bank, TransNational Corporation and Nigerian Aviation Handling Company each depreciated by 0.20 kobo to close at N1.94, N1.94, and N3.86 per share respectively.

Nestle topped the gainers’ chart with 3.89 kobo to close at N1,475 per share. Nigerian Breweries followed with 2.99 kobo to close at N147.99 per share. Cement Company of Northern Nigeria appreciated by 0.60 kobo to close at N17.90 per share. WAPCO added 0.52 kobo to close at N52.50 per share. PZ Cussons gained 0.29 kobo to close at N23.79 per share.

TransNational Corporations was the toast of investors’ yesterday with 91 million shares valued at N178million, while Skye Bank followed with 83 million units worth N117million. FBN holdings accounted for 60 million units valued at N754million.

Unity Bank traded 43 million shares worth N58million. First City Monument Bank exchanged 38 million shares worth N118million.

In all, investors exchanged 536 million shares valued at N5.2billion in 7,370 deals, lower than a total of 737 million units worth N7.7billion that changed hands in 8,927 deals on Tuesday.


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