Profit-taking drags stock market All-share index down 1.5%

Bearish sentiments resurfaced on the trading floor of the Nigerian Stock Exchange (NSE) yesterday, following profit-taking by investors, resulting to a significant drop in the All-share index by 1.5 per cent.

Yesterday, the All Share Index (ASI) shed 519.31 absolute points or 1.49 per cent to close at 40,615.42 points, resulting to year-to-date loss of 10.01 per cent.

Also, the market capitalisation declined by N189 billion to close at N12.564 trillion.

The drop in indices may, however, be attributed to profit-taking embarked by investors in highly capitalised stocks to recoup their investment.

Analysts at Afrinvest Limited, said: “Going forward, we believe market performance will remain largely bearish as sentiments remain soft.”

Also, Codros Capital Limited said: “We guide investors to trade cautiously in the short to medium, as selloffs are likely to persist, amidst the absence of a one-off positive trigger, as well as likely negative sentiments of investors (particularly foreign players), as a result of contagion effect of emerging market selloffs, and political concerns ahead of the 2019 election.”

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Seplat Petroleum Development Company, Dangote Cement, Stanbic IBTC, Flour Mills Nigeria, and Ecobank Transnational Incorporated.

Market breadth closed negative, with 20 gainers versus 26 losers.

C&I Leasing recorded the highest price gain of 9.93 per cent, to close at N2.99 per share.

Consolidated Hallmark Insurance followed with a gain of 8.57 per cent to close at 38 kobo.

Jaiz Bank appreciated by 8.16 per cent to close at 53 kobo per share.

Sterling Bank appreciated by 5.84 per cent to close at N1.45, while Forte Oil gained 5.26 per cent to close at N20 per share.

On the other hand, Mutual Benefit Assurance led the losers’ chart by 10 per cent, to close at 27 kobo per share.

Learn Africa followed with a decline of 9.82 per cent to close at N1.01, while Chams depreciated by 9.68 per cent to close at 28 kobo per share.

Law Union & Rock Insurance declined by 9.59 per cent to close at 66 kobo and Niger Insurance also shed 9.09 per cent to close at 40 kobo per share.

Similarly, the total volume traded depreciated by 16.7 per cent to 200.28 million shares worth N2.16 billion, traded in 3,224 deals.

Transactions in the shares of united Bank for Africa (UBA) topped the activity chart with 22.48 million shares valued at N180.35 million.