Sustained profit- taking sheds ASI below 38,000bpts

Following previous rallies recorded on the Nigerian Stock Exchange, investors have resorted to taking profit for the second consecutive day says market analyst.

According to Head of Research at ARM securities, Kayode Omosebi, a lot of stocks have rallied significantly in the last two months and investors both domestic and institutional are beginning to sell off causing slower momentum in the market.

This has led to a 2.56 percent decline in the ASI in two days to settle below 38,000 benchmarks at 37,933.70 points on Thursday. The Year to Date returns thus stands at 41.15 per cent.

Equities trading activities on Thursday ended with the Oil and Gas index emerging the sole gainer after appreciating 3.76 per cent as a result of price appreciation in Seplat, while other sectoral indices closed red.

The industrial index recorded the heaviest loss of 3.08 per cent as Dangote Cement shed 4.12 per cent to close at N230 per share while the banking, consumer goods and insurance indices recorded losses of 0.99, 0.44and 0.56per cent respectively.

Market breadth closed negative with 10 gainers led by Seplat and 31 losers led by Flourmill. Market turnover also closed negative as volume declined 10.69 per cent to 289.3 million and value traded amounted to N6.2 billion.

Topping trading activities were FBN Holdings that exchanged 39.972 million shares at N357.1m, FCMB that exchanged 33.1 million shares at N43.1m and Zenith Bank that exchanged 29.4 million shares at N729.2m

The equities market capitalisation stood at N13.497trn at the close of business on Thursday.

Meanwhile, the executive state Governor was at the Nigerian Stock Exchange to perform the closing gong ceremony.

Speaking to stockbrokers, the governor hinted at a need for the state to approach the capital market soon in order to raise funds, for infrastructural development such as roads, agriculture, water and other life enhancing infrastructure.

L – R: Bola Adeeko, Head, Corporate Services Division, The Nigerian Stock Exchange (NSE); Aderemi A. Adetayo, Chief Executive Officer, Moving Media; Oscar N. Onyema, OON, Chief Executive Officer, NSE, His Excellency, Senator Ibikunle Amosun, Executive Governor, Ogun State; Abimbola Ogunbanjo, President, NSE and Sola Adeeyo, Chairman, AxaMansard Plc during a Closing Gong Ceremony at The Exchange… on Thursday.

Adesola Afolabi