Profit-taking drags stock market capitalisation by N39 billion
Following renewed profit-taking in some high value stocks, the Nigerian Stock Exchange (NSE) halted a five-day rally to reopen on a downturn yesterday, as market capitalisation fell by N39 billion.
At the close of transactions Monday, the All Share Index (ASI) shed 93.76 absolute points or 0.23 per cent loss to close at 41,082.38 points. Accordingly, investors lost N39 billion in value as market capitalisation depreciated to N21.491 trillion.
The downturn was impacted by losses recorded in medium and large capital stocks, including Dangote Cement, Flour Mills of Nigeria, Guinness Nigeria, NASCON Allied Industries, and FBN Holdings (FBNH).
Analysts at United Capital Plc said: “While we expect investors to book some profit from last week’s gains, demand for high-yield dividend companies should sustain the market’s bullish momentum.”
Afrinvest Limited said: “In the next trading session, we expect to see investors take profit. However, we are optimistic that the market will close on a positive note this week.”
Also, analysts at Vetiva Dealing & Brokerage said: “Despite the positive market breadth and the positive sectoral performances, the domestic market ended today’s session in the red, as a result of profit taking action in the Consumer goods and Industrial goods sectors.
“With the rising inflation rate and the low yield in the fixed income market, we expect investors’ to continue to channel funds into the equity market in anticipation of a better return.”
However, sentiment, as measured by market breadth, was positive, as 35 stocks gained, relative to 22 losers. African Alliance Insurance, AIICO Insurance, Cadbury Nigeria, R.T. Briscoe, Trans-Nationwide Express, and Universal Insurance recorded the highest price gain of 10 per cent each to close at 22 kobo, N1.32, N10.45, 22 kobo, 88 kobo, and 22 kobo, respectively.
BOC Gases followed with a 9.98 per cent gain to close at N13.77, while Livestock Feeds rose 9.95 per cent to close at N2.32 kobo.
On the other hand, Japaul Gold and Ventures led the losers’ chart by 6.58 per cent to close at N1.42 kobo.
Flour Mills of Nigeria followed with 5.49 per cent fall to close at N31.00, while Wema Bank shed 5.33 per cent to close at 71 kobo.
Neimeth International Pharmaceuticals shed 4.76 per cent to close at N2.00, and GlaxoSmithKline Consumer Nigeria slipped 4.29 per cent to close at N6.70 kobo.
Meanwhile, the total volume traded increased by 10.77 per cent to 738.525 million shares worth N4.173 billion, traded in 7,396 deals.
Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 92.361 million shares valued at N145.793 million.
Universal Insurance followed with 51.789 million shares worth N10.407 million, while Transnational Corporation of Nigeria (Transcorp) traded 43.145 million shares valued at N46.165 million.
FBNH traded 39.767 million shares at N298.247 million, and AXA Mansard Insurance transacted 38.199 million shares worth N63.882 million.