Persistent profit-taking drags stock market index further by 0.4%

Price losses extended into the second consecutive day, following persistent profit taking by investors on the equities sector of the Nigerian Stock Exchange (NSE), as the All-share index plunged further by 0.4 per cent.

Specifically, at the close of trading yesterday, the All Share Index (ASI) declined by 111.68 absolute points, representing a decrease of 0.35 per cent, to close at 32,010.06 points. Similarly, market capitalisation shed N42 billion, to close at N11.937 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Mobil Nigeria, Dangote Cement, PZ Industries, Flour Mills Nigeria and Guaranty Trust Bank.

Analysts at Cordros Capital said; “the still tense political environment guides our view of cautious trading in short term. However, attractive valuations and stable macro-economic fundamentals provide scope for sustained market recovery in the medium-to-long term.”Also, Afrinvest Limited maintained a positive outlook close to the benchmark index today based on investor’s bargain hunting and positioning ahead of dividend announcements.

Market breadth closed negative, with nine gainers versus 26 losers. Cadbury Nigeria recorded the highest price gain of 7.84 per cent, to close at N11, per share. Dangote Flour Mills gained 4.13 per cent to close at N11.35, while Stanbic IBTC Holdings appreciated by three per cent to close at N48, per share.
Custodian Investment appreciated by 2.56 per cent to close at N6, while FCMB Groups gained 2.43 per cent to close at N2.11, per share.

On the other hand, University Press led the losers’ chart by 9.78 per cent, to close at N2.03, per share. United Capital shed 9.09 per cent to close at N3, while Royal Exchange depreciated by 8.57 per cent to close at 32 kobo, per share.PZ Industries declined by 8.26 per cent to close at N11.10 and Mutual Benefits Assurance shed eight per cent to close at 23 kobo per share.

However, the total volume traded rose marginally by 4.94 per cent to 218.9 million shares, worth N2.74 billion, and traded in 3,519 deals. Transactions in the shares of Zenith Bank topped the activity chart with 34.81 million shares valued at N859.73 million.Access Bank followed with 29.21 million shares worth N177.49 million, while FBN Holdings traded 28.98 million shares valued at N235.88 million.Guaranty Trust Bank traded 22.54 million shares valued at N850.07 million, while United Bank for Africa (UBA) transacted 14.42 million shares worth N111.07 million.