Quoted equities reopened on Monday with renewed profit-taking transactions as investors sought to lock in profits from last week’s surge in share prices. The sell-off, especially within the group of highly capitalised stocks, led to a net capital loss of N17 billion.
Total market capitalisation of all quoted equities on the Nigerian Stock Exchange (NSE) dropped from its opening value of N9.535 trillion to close at N9.518 trillion. The All Share Index (ASI), the common value-based index that tracks prices at the NSE, also dropped by 0.18 per cent from 27,756.67 points to close at 27,707.12 points. The decline nudged the negative average year-to-date return to -3.26 per cent.
Sectoral indices also indicated a largely bearish market, highlighting the sectoral weight of the declining high-cap stocks. The NSE Consumer Goods Index dropped by 0.5 per cent. The NSE Insurance Index declined by 0.4 per cent while the NSE Industrial Goods Index slipped by 0.3 per cent. On the other hand, the NSE Banking Index appreciated by 0.7 per cent while the NSE Oil and Gas Index inched up by 0.2 per cent.
The negative overall market position was largely due to losses recorded by highly capitalised stocks, especially the two most capitalised stocks at the stock market-Dangote Cement and Nigerian Breweries.
Dangote Cement, the most capitalised stock that controls more than one-quarter of the total market capitalisation, led the 17-stock losers’ list with a loss of N1.01 to close at N175. Nigerian Breweries, the second most capitalised stock, followed with a loss of N1 to close at N140. PZ Cussons dropped by 93 kobo to close at N17.77. International Breweries lost 76 kobo to close at N19 while United Capital declined by 10 kobo to close at N2.19 per share.
On the positive side, Guinness Nigeria led 12 other stocks with a gain of 85 kobo to close at N95.50. CAP rose by 43 kobo to N32. United Bank for Africa added 16 kobo to close at N4.50. Zenith Bank gathered 15 kobo to close at N14.95 while Oando and Nigerian Aviation Handling Company (Nahco) chalked up 10 kobo each to close at N4.86 and N3.50 respectively.
Turnover was around average as investors exchanged 195.02 million shares valued at N1.57 billion in 3,221 deals. Banking stocks dominated the top activities chart. FBN Holdings was the most active with a turnover of 53.8 million shares valued at N169.51 million. Guaranty Trust Bank followed with 23.54 million shares worth N635.67 million while Diamond Bank placed third with 19.4 million shares worth N22.4 million.
“We expect the market to trade sideways in the next trading session,” analysts at Afrinvest Securities stated.
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