Profit-taking reverses NSE gaining streak as index loses N50b
…As Senate C’ttee screens new SEC DG, others
Following profit-taking embarked upon by investors, the Nigerian equities market halted recent gaining streak to close on a downturn yesterday, as market capitalisation lost N50billion.
Precisely, the All-Share Index (ASI) decreased by 95.91 absolute points, representing a dip of 0.38 per cent to close at 25,312.05 points. Similarly, the overall market capitalisation shed N50billion to close at N13.204trillion.
The downturn was impacted by losses recorded in medium and large value stocks, amongst which were; MTN Nigeria Communications (MTNN), Guaranty Trust Bank, Custodian Investment, Glaxo Smithkline Consumer Nigeria, and Access Bank.
Analysts attributed the drop in indices to profit-taking caused by sustained rally witnessed on the Nigerian Stock Exchange (NSE) over the last couple of days, as investors leveraged the capital appreciation recorded to recoup their investment.
Also, market breadth closed slightly negative, recording 16 gainers against 17 losers. UACN Property Development Company recorded the highest price gain of 10 per cent to close at 88 kobo per share.
Linkage Assurance followed with 9.76 per cent to close at 45 kobo, and Skyway Aviation Holding Company gained 9.69 per cent to close at N2.49, per share.
Neimeth International Pharmaceuticals rose 9.52 per cent to close at N1.61, while C & I Leasing edged up 9.28 per cent to close at N5.30, per share.
On the other hand, Cutix led the losers’ chart by 9.63 per cent to close at N1.69 per share. Lasaco Assurance followed with 7.41 per cent to close at 25 kobo, and Custodian Investment shed 7.14 per cent to close at N5.85, per share.
Union Diagnostic & Clinical Services fell 6.67 per cent to close at 28 kobo, while May and Baker Nigeria shed 5.54 per cent to close at N2.90, per share.
Also, the total volume of trade dropped 23.53 per cent to 270.193 million units valued at N5.296billion, exchanged in 4,550 deals. Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 41.353 million shares valued at N225.671million.
Zenith Bank followed with 25.211 million shares worth N427.739million, while FCMB Groups traded 22.072 million shares valued at N38.225million.
Guaranty Trust Bank traded 18.741 million shares at N465.253million, and Dangote Cement transacted 18.025 million shares worth N2.574billion.
Meanwhile, the new Director General (DG) of the Securities and Exchange Commission (SEC), Lamido Yuguda on Wednesday, appeared before the Senate Committee on Capital Market to be screened for approval.
The Senate had on May 19, 2020, received a request from President Muhammadu Buhari for the confirmation of Lamido Yuguda, as new Director-General of the commission.
Also to be screened and confirmed are three nominees as full-time commissioners.
The request comes three years after the apex capital market regulator has been operating without a substantive head, following the suspension of the former DG, Mournir Gwarzo, in 2017, on allegations of financial misconduct, unlawful carting away of sensitive documents, and unsatisfactory response to queries served on him.
The Chairman of the committee, Senator Ibikunle Amosun at the screening of nominees for full-time DG and Commissioners of the SEC, SEC in Abuja, yesterday, described the Nigerian Capital market as a very critical tool that could rescue the nation’s economy from the brink of recession in the face of COVID-19.
Amosun said that the capital market had the depth to revamp the nation’s poor state of infrastructure, noting that there was no better time than now for federal and state governments to leverage opportunities provided by the capital market for sourcing infrastructure financing.
“We now know what the capital market can do to rescue the economy at a time like this.
Shares are tumbling but we hope it won’t last long, however, we also have to look inward and explore ways of diversifying our economy away from crude oil.”