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NGX halts gains as index slumps by 0.3% amid profit-taking

By Helen Oji
17 May 2022   |   2:49 am
Following renewed profit-taking embarked by investors, the Nigerian Exchange Limited (NGX) halted its gaining streak to close on a downward note yesterday, causing the index to depreciate by 0.3 per cent.

Following renewed profit-taking embarked by investors, the Nigerian Exchange Limited (NGX) halted its gaining streak to close on a downward note yesterday, causing the index to depreciate by 0.3 per cent.

At the close of transactions yesterday, the All-Share Index (ASI) fell by 154.37 absolute points, representing a decrease of 0.29 per cent to close at 52,944.09 points.

Similarly, the overall market capitalisation value lost N83 billion to close at N28.543 trillion. The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Lafarge Africa, MTN Nigeria Communications (MTNN), International Breweries, GlaxoSmithKline Consumer Nigeria and Flour Mills of Nigeria.

On market outlook, GTI Securities Limited said: “Stock market resumed trading activities this week bearish, as inflation advanced by 16.82 per cent. This week, we expect profit-taking to continue.”

United Capital Plc said: “We anticipate continued market interest in the domestic equities space, as money managers will continue to cheery pick stocks with solid fundamentals, following the relatively quiet fixed income space.”

Vetiva Dealings and Brokerage firm said: “With the week starting on a mildly negative note, we anticipate some rebounds in tomorrow’s session as investors mop up some attractive names that lost today.

“However, we do note the possibility of subdued activity levels this week due to the anticipated MPC decision, which could affect the general direction of the equity market in the near to medium-term.”

However, market sentiment, as measured by market breadth, was positive as 27 stocks gained while 20 others depreciated in price.

McNichols Plc recorded the highest price gain of 9.70 per cent to close at N1.47 kobo while Northern Nigeria Flour Mills (NNFM) followed with a gain 9.55 per cent to close at N10.90 kobo. Transnational Corporation of Nigeria (Transcorp) rose by 8.53 per cent to close at N1.40 kobo.

Wapic Insurance rose by 7.14 per cent to close at 45 kobo while Consolidated Hallmark Insurance advanced by 7.02 per cent to close at 61 kobo.

On the other hand, Champion Breweries led the losers’ chart by 9.84 per cent to close at N3.94 kobo while GlaxoSmithKline Consumer Nigeria followed with a decline of 9.49 per cent to close at N7.15 kobo while International Breweries depreciated by 9.09 per cent to close at N8.

Neimeth International Pharmaceuticals declined by 8.33 per cent to close at N1.76 kobo while Lafarge Africa depreciated by 8.28 per cent to close at N28.80 kobo.

Meanwhile, the total volume of trades increased by 23.30 per cent to 374.184 million units, valued at N4.964 billion, and exchanged in 6,854 deals.

Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 88.586 million shares valued at N118.991 million.

Jaiz Bank followed with 87.416 million shares worth N77.858 million, while Access Holdings traded 28.752 million shares valued at N278.564 million.

International Breweries traded 16.211 million shares valued at N130.237 million, while Ikeja Hotel transacted 11.376 million shares worth N12.628 million.