Equities market records N119bn investors’ profit-taking

The equities market segment of the Nigerian Stock Exchange (NSE) resumed trading on Monday with a loss of N119billion as a result of profit-taking in some blue chips.

Specifically, the All-Share Index which opened the week at 25,182.67 basis points lost 228.35 basis points or 0.91 per cent to close at 24,954.32 basis points.

Accordingly, Month-to-Date and Year-to-Date losses increased to -1.2 per cent and -7.0 per cent, respectively.

Also, the market capitalisation shed N119 billion or 0.91 per cent to close at N13.017 trillion against N13.136 trillion posted on Thursday.

Analysing by sectors, the performance was weak, following declines across the board, save for the Insurance (+0.9 per cent) an index that gained.

The Banking (-1.9per cent) index recorded the largest decline, followed by the Industrial Goods (-1.4 per cent), Oil and Gas (-0.3 per cent), and Consumer Goods (-0.03 per cent) indices.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communications (MTNN), BUA Cement, Zenith Bank, Ecobank Transnational Incorporated and Guaranty Trust Bank.

Analysts at InvestmentOne research said, “The equities market closed negative today on the back of the losses recorded across all sectors.

“Although market sentiments have tilted positive over the past few weeks, we retain our stance that this may be one of the best periods to pick up some quality names with a medium to long term horizon.

“We urge our clients to be cautious and only take positions in fundamental names.”

 Analysts at United Capital Plc said: “Looking ahead, we expect the market to remain volatile, as investors lock funds in cheap and fundamentally sound stocks, while taking profit on some stocks that gained last week.”

Consequently, market breadth closed negative with 16 stocks compared with 25 decliners.

Prestige Assurance led the losers’ chart in percentage terms, dropping by 10 per cent, to close at 63k, per share.

Neimeth International Pharmaceuticals followed with 9.73 per cent to close at N2.32, while AIICO Insurance shed 9.32 per cent to close at N1.07, per share.

ETI dropped 7.34 per cent to close at N5.05, while UACN Property Development dipped 6.73 per cent to close at 97k, per share.

Conversely, Fidson Healthcare and Red Star Express led the gainers’ chart in percentage terms, appreciating by 10 per cent each to close at N3.30 and N3.63 per share, respectively.

Cornerstone Insurance followed with gain 9.80 per cent to close at 56k, per share.

Honeywell Flour Mills rose by 9.78 per cent to close at N1.01, while Unity Bank appreciated by 8.77 per cent to close at 62k, per share.

In the same vein, the total volume traded declined by 29.51 per cent with an exchange of 237.65 million shares, worth N1.61 billion, and traded in 4,808 deals.