Equities in Marginal Loss as Profit-taking Resurfaces

• Equities in Marginal Loss as Profit-taking Resurfaces

Nigerian equities snapped a two-day rally yesterday as investors turned round to take profits on stocks that had led the recent rally. Underlying market sentiments remained largely negative at the Nigerian Stock Exchange (NSE) with nearly two losers for every gainer.

Aggregate market value of all quoted equities on the NSE dropped marginally from its opening value of N9.629 trillion to close at N9.627 trillion, representing net capital loss of N2 billion. The All Share Index (ASI), the value-based benchmark index for the stock market, also declined marginally by 0.03 per cent to close at 28,027.23 points as against its opening index of 28,034.32 points.

Group and sectoral indices showed mixed performance across the sectors. The NSE Industrial Goods Index declined by 0.9 per cent. The NSE Consumer Goods Index lost 0.6 per cent. However, the NSE Oil & Gas Index rose by 1.5 per cent. The NSE Banking Index appreciated by 0.7 per cent while the NSE Insurance Index inched up by 0.2 per cent.

With 20 losers to 13 gainers, the market performance was driven by the preponderance of losers to gainers as well as losses suffered by highly capitalised stocks, especially in the industrial goods and fast moving consumer goods sectors.

Nestle Nigeria, the highest-priced stock at the stock market, led the losers with a loss of N19.43 to close at N805.57. Lafarge Africa followed with a loss of N1.28 to close at N46.81. Presco dropped by N1.25 to close at N40.25. Flour Mills of Nigeria declined by 65 kobo to close at N20.05. UACN Property Development Company lost 37 kobo to close at N3.58. E-Tranzact dipped by 28 kobo to N5.41 while Dangote Sugar Refinery lost 18 kobo to close at N6.32 per share.

The market also showed a slowdown in the momentum of activities. Turnover fell below average with the exchange of 155.58 million shares valued at N1.43 billion in 3,277 deals. Guaranty Trust Bank was the most active stock with a turnover of 28.09 million shares valued at N672.8 million. United Bank for Africa followed with a turnover of 28.04 million shares valued at N119.8 million while Transnational Corporation of Nigeria (Transcorp) placed third with a turnover of 14.75 million shares worth N14.98 million.

On the positive side, Seplat Petroleum Development Company led the gainers with a gain of N18.37 to close at N385.88. Guinness Nigeria followed with a gain of N3.74 to close at N79.74. Total Nigeria rose by N2.50 to close at N289.50. Guaranty Trust Bank added 15 kobo to close at N24 while United Bank for Africa chalked up 13 kobo to close at N4.31 per share.

“We expect the market to remain soft, as shown by persistent weak breadth and trading volumes, for the remainder of the week in the absence of more earnings releases,” analysts at Afrinvest Securities stated in post-trading review.