Nigerian Stock Exchange Loses N85bn on Tuesday

• Nigerian Stock Exchange Loses N85bn on Tuesday

After gaining N69 billion on Monday, the Nigerian Stock Exchange (NSE) dropped N85 billion on Tuesday as investors won’t stop taking profit ahead of presidential poll result.

The market capitalisation of listed equities declined from N12.194 trillion it closed on Monday to N12.109 trillion on Tuesday. Representing a decline of N85 billion or 0.69 per cent.

The All-Share Index dipped by 226.30 points or 0.69 per cent to close at 32,473.82, down from 32,700.12 recorded on Monday.

Top gainers were Guinness gained N2.05 to close at N67.15 per share, Dangote Flour rose N1 to close at N12.05, while Oando gained 65k to close at N7.25 per share.

Air Services added 60k to close at N7.05, while Africa Prudential increased by 44k to close at N4.84 per share.

Activity level showed the volume of shares traded rose by 46.57 per cent with an exchange of 322.18 million shares valued at N2.43 billion in 4,066 transactions. This was lower than the 219.81 million shares worth N5.55 billion exchanged in 2,999 deals on Monday.

The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, attributed the pullback to profit taking by smart investors.

According to him, smart investors that bolstered the market with the hope that opposition will win the presidential election are already leaving the market.

He also said investors who entered the market in anticipation that opposition economic policy would boost market growth are now taking profit ahead of earnings season.

“This pullback may not last as a result of 2019 dividend declaration season as dividend yield of financial service stocks are high and attractive due to low prices,” Omordion stated.