- Equities Lose N156b as Selloff Worsens
The profit-taking trend at the Nigerian stock market entered the fourth consecutive trading session yesterday as increased open order for sale shaved off N156 billion from the market value of quoted equities.
The All Share Index (ASI)- the benchmark index at the Nigerian Stock Exchange (NSE), declined by 0.99 per cent from its opening index of 43,963.40 points to close at 43,529.06 points. Aggregate market value of all quoted equities dropped from its opening value of N15.760 trillion to close at N15.604 trillion, representing a net loss of N156 billion. Average year-to-date return slipped to 13.82 per cent.
Investors meanwhile appeared to be intensifying bargain-hunting for several value stocks, narrowing down the gap between the gainers and losers. Dangote Sugar Refinery, United Bank for Africa (UBA) and African Prudential recorded the highest gains, in percentage terms. Dangote Sugar Refinery recorded the highest gain of 10.16 per cent to close at N22.01. African Prudential followed with a gain of 4.24 per cent to close at N4.43 while UBA recorded the third highest gain of 4.08 per cent to close at N12.49 per share.
With 21 gainers and 30 losers, the gap narrowed down between bargain-hunting and profit-taking. The NSE Industrial Goods Index dropped by 2.0 per cent while the NSE Banking Index declined by 0.4 per cent. On the upside, the NSE Consumer Goods Index rose by 0.7 per cent. The NSE Oil & Gas Index appreciated by 0.3 per cent while the NSE Insurance Index closed flat.
GlaxoSmithKline Consumer Nigeria led the losers with a loss of 9.67 per cent to close at N18.88. Caverton Offshore Support Group followed with a drop of 9.41 per cent to close at N2.31. Diamond Bank declined by 9.25 per cent to close at N2.65. Skye Bank dropped by 9.22 per cent to close at N1.28 while Unity Bank declined by 9.09 per cent to close at N1.20 per share.
Total turnover stood at 500.85 million shares valued at N6.63 billion in 6,002 deals. The three most active stocks were Transnational Corporation of Nigeria, with 66.40 million shares; Fidelity Bank, 64.69 million shares and Zenith Bank, with a turnover of 54.86 million shares.
“The market is likely to move from the oversold position in the subsequent trading sessions as investors have started to show buying interest,” FSDH Securities stated.
“We expect a negative close to the week following 4 consecutive days of losses as investors continue to lock in profits,” Afrinvest Securities stated in a post-trading note.
