NSE LIVE! Index drops by 0.17% as profit-taking halts equities’ rally

After four days of sustained consecutive gains, the Nigerian equities market suffered a relapse on Friday as investors turned round to readjust portfolios and monetize built-up capital gains.
Benchmark indices at the Nigerian Stock Exchange (NSE) closed the weekend on the negative with average day-on-day decline of 0.17 per cent, equivalent to a loss of N19 billion. The All Share Index (ASI), a value-based composite index that tracks prices of all quoted equities dropped to 31,441.71 points as against its opening index of 31,495.73 points. Aggregate market capitalisation of all quoted companies also declined from its opening value of N10.795 trillion to close at N10.776 trillion.
While the bullish sentiments still appeared to be widespread with more gainers than losers, losses by several highly capitalised stocks overshadowed the overall market situation. The negative average year-to-date return, which had built up to double digit by the end of July but was moderated to single digit by the early gains in August, inched up to -9.28 per cent yesterday.
Guinness Nigeria, the second highest priced and capitalised breweries stock, led 17 other decliners with a drop of N6 to close at N131. Total Nigeria followed with a drop of N5.25 to close at N150. Flour Mills of Nigeria, Nigeria’s largest flour-milling company, declined by N1.84 to close at N29. Cadbury Nigeria lost N1.75 to close at N33.30. Okomu Oil Palm dropped by N1.17 to close at N24.83. Stanbic IBTC Holdings declined by 90 kobo to N21. Northern Nigeria Flour Mills dropped by 69 kobo to close at N13.30. Guaranty Trust Bank, the most capitalised banking stock, lost 60 kobo to close at N24.10. Zenith Bank, the second most capitalised banking stock, also dropped by 30 kobo to close at N16.90 while Unity Bank lost five kobo to close at N2.05 per share.
Investors’ appetite remained strong with above average turnover and widespread buying sentiments. Total turnover yesterday stood at 524.65 million shares valued at N2.33 billion in 3,437 deals. The financial services sector accounted for about 85 per cent of aggregate turnover as investors traded 444.83 million financial services shares valued at N1.5 billion in 1,649 deals.
Further analysis showed that Continental Reinsurance was the most active stock with a turnover of 315.48 million shares worth N293.39 million in 11 deals. Transnational Corporation of Nigeria placed second with a turnover of 47.46 million shares valued at N133.66 million in 348 deals. Zenith Bank placed third on the activity chart with a turnover of 24.61 million shares valued at N415.86 million in 319 deals.
On the upside, Forte Oil, which says it will consider mergers and acquisitions going forward, remained a major mover, leading the 24-stock gainers’ list with a gain of N8 to close at N208. Mobil Oil Nigeria followed with addition of N5 to close at N160. PZ Cussons Nigeria rose by N1.51 to close at N34.51. Ashaka Cement chalked up n1 to close at N23. Berger Paints added 47 kobo to close at N9.97. Oando rose by 30 kobo to close at N12.30. Nigerian Breweries gathered 28 kobo to close at N135. FBN Holdings and Lafarge Africa added 25 kobo each to close at N7 and N103.25 respectively while Dangote Flour Mills added 10 kobo to close at N3.25 per share.

Read also: NSE LIVE! Investors stake N5.3b on equities as rally continues

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