Stocks Plunge by N37bn on Profit-taking Moves

Forex Market
  • Stocks Plunge by N37bn on Profit-taking Moves

The Nigerian Stock Exchange market capitalisation fell by N37bn on Thursday owing to profit-taking activities by investors.

The positive trend in the equities market was reversed as the All-Share index declined 29 basis points to close at 36,517.48 basis points after equities capitalisation dropped to N12.638tn from N12.675tn. The year-to-date return moderated to 35.9 per cent.

A total of 358.807 million shares worth N4.224bn exchanged hands in 4,384 deals.

The market was dragged by profit-taking in Nigerian Breweries Plc, International Breweries Plc and Guaranty Trust Bank Plc, which declined respectively by 3.7 per cent, five per cent and 0.7 per cent.

However, market activity was mixed as volume traded rose by 7.2 per cent while value fell by 9.4 per cent to close at 356.8 million units and N4.2bn, respectively.

Sector performance was largely bearish with the industrial goods index emerging the lone gainer due to bargain hunting in Lafarge Africa Plc, which gained 2.9 per cent.

The insurance index led losers, down by 1.2 per cent on account of persistent sell-offs in AxaMansard Insurance Plc and NEM Insurance Nigeria Plc, leading to a respective drop of 3.5 per cent and five per cent.

The consumer goods index followed closely, down by one per cent, consequent upon investors’ negative reaction towards Nigerian Breweries and International Breweries.

In the same vein, the oil/gas index lost 0.5 per cent on account of declines in Forte Oil Plc and 11 Plc, which dropped by five per cent and 0.3 per cent, accordingly, while declines in the GTBank and United Bank of Africa Plc (which shed 0.6 per cent), made the banking index to go down 20 basis points.

Investor sentiment weakened as market breadth shrank. The top performers were Nascon Allied Industries Plc, Dangote Flour Plc and Dangote Sugar Refinery Plc, which appreciated by 10.2 per cent, 10.1 per cent and 8.8 per cent, accordingly.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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