Profit taking drags stock market indices by N57b
Hopes for a bulls’ run dimmed yesterday, following renewed profit-taking by investors at the Nigerian Stock Exchange (NSE), as the bears took centre stage again on equity transactions, reversing the Tuesday’s positive sentiment, as market capitalisation depreciated by N57billion.
Specifically, at the close of transactions yesterday, the All Share Index (NSE-ASI) shed 157.27 absolute points, representing a decline of 0.44 per cent to close at 35,358.94 points. Also, the market capitalisation declined by N57billion to close at N12.909trillion.The downturn was buoyed by profit-taking in the shares of Flourmills Nigerian, Lafarge Africa, Unilever Nigeria, Dangote Cement, and FBN Holdings.
Analysts at Afrinvest Limited, noted that, “despite the decline in the broader index, we expect the market to rebound in today’s trading session as investors hunt for bargain opportunities. “Our view is further supported by technical analysis, as the current 14-Day RSI (Relative Strength Index) of the market is 39.0 points, which is closer to the oversold region.”
Market breadth closed negative, with 18 gainers versus 27 losers. Portland Paints and Products Nigeria recorded the highest price gain of 9.96 per cent, to close at N2.98 per share. Regency Alliance Insurance followed with a gain of 9.52 per cent to close at 23kobo, while Skye Bank rose by 7.69 per cent to close at 56kobo per cent.
PZ Cussons Nigeria appreciated by 7.14 per cent to close at N15, while Diamond Bank rose 6.92 per cent to close at N1.39 per share.On the other hand, Livestock led the losers’ chart by 10 per cent, to close at 54kobo per share. Standard Alliance Insurance trailed with a decline of 9.52 per cent to close at 38kobo, while Lasaco Assurance shed 9.09 per cent to close at 30kobo per share.
First Aluminium fell 8.33 per cent to close at 33kobo, and FBN Holdings shed 7.22 per cent to close at N9 per share.The total volume traded appreciated marginally by 1.58 per cent to 345.06 million shares worth N2.27billion, traded in 3,261 deals. Transactions in the shares of NEM Insurance topped the activity chart with 180.1 million shares valued at N540.13million. United Bank for Africa (UBA) followed with 27.2 million shares worth N221.46million, while Transnational Corporation of Nigeria (Transcorp) traded 21.75 million shares valued at N27.36million.Ecobank Transnational Incorporated (ETI) traded 19.15 million shares valued at N383.05million, while FCMB Groups transacted 11.63 million shares worth N21.97million.