Profit-taking persists as investors wealth plunge further by N278b
Transactions on the equities sector of the Nigerian Stock Exchange (NSE), continued southward for the third successive sessions, as investors wealth plunged by N278 billion
The All-Share Index (ASI) lost 531.25 absolute points or 1.53 per cent to close at 34,242.83 points. Similarly, the overall market capitalisation value also shed N278 billion to close at N17.893 trillion.
Yesterday’s downtrend was driven by losses in medium and large value stocks, including Nestle Nigeria, Dangote Cement, Nigerian Breweries, Cadbury Nigeria, and International Breweries.
Analysts attributed the downturn to continued profit-booking across sectors after eight straight weeks of market rally, resulting in losses.
The Chief Operating Officer, InvestData Consulting Limited, Ambrose Omordion, said the pullbacks are creating another new buy-in opportunities that will rally when the market turns up, despite that factors responsible for the recovery and the bull transition have remained strong over the year.
He added, “We expect the NSE index to rebound before the week runs out after the profit-taking to sustain this uptrend till early second quarter of 2021.”
Sentiment, as measured by market breadth, was negative, as 30 stocks declined, relative to 17 gainers. BOC Gases Nigeria recorded the highest price gain of 9.96 per cent to close at N5.85, while GlaxoSmithKline Consumer Nigeria followed with 9.56 per cent to close at N7.45, per share.
Conoil appreciated by 9.45 per cent to close at N20.85, and Mutual Benefits Assurance and Union Diagnostic & Clinical Services rose 7.69 per cent each, to close at 28 kobo each, per share.
On the other hand, Oando and Wapic Insurance led the losers’ chart by 10 per cent each to close at N3.24 and 45 kobo, respectively, while Portland Paints & Products Nigeria followed with 9.97 per cent to close at N2.62, per share.
Livestock Feeds fell 9.92 per cent to close at N1.18, and Cadbury Nigeria shed 9.85 per cent to close at N9.15, per share.
However, the total volume of trade increased by 1,299 per cent to 9.360 billion units worth N12.021 billion, exchanged in 8,712 deals.
Transactions in the shares of UACN Property Development Company topped the activity chart with 8.52 billion shares valued at N5.964 billion. Jaiz Bank followed with 304.731 million shares worth N222.222 million, while Transnational Corporation of Nigeria (Transcorp) traded 95.949 million shares valued at N97.2926 million.
FBN Holdings (FBNH) traded 82.407 million shares at N613.82 million, and United Bank for Africa (UBA) sold 52.837 million shares worth N440.557 million.