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NSE LIVE! Nigerian equities open with N64bn loss as profit-taking resumes

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NSE LIVE! Equities’ rally gathers momentum with N28bn gain

After three weeks of consecutive capital appreciation, Nigerian equities reopened on Monday to a tinge of profit-taking as investors sought to monetise capital gains. With a tight balance of bargain-hunting and profit-taking, benchmark indices showed average decline of 0.40 per cent on Monday, equivalent to net capital depreciation of N64 billion.

The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), declined from its opening index of 45,092.83 points to close at 44,912.53 points. Aggregate market value of all quoted equities also dropped from its opening value of N16.154 trillion to close at N16.090 trillion. With this, the average year-to-date return slipped to 17.44 per cent.

With 26 advancers and decliners each, the market performance reflected the losses recorded by some highly capitalised stocks. Most sectoral indices also closed negative, with the NSE Banking Index, which had led the rally so far this year, taking the biggest hit with a decline of 0.9 per cent. The NSE Oil & Gas Index dropped by 0.6 per cent while the NSE Consumer Goods Index dropped by 0.4 per cent. On the positive side, the NSE Insurance Index rose by 0.4 per cent while the NSE Industrial Goods Index appreciated by 0.2 per cent.

Most analysts agreed that profit-taking transactions might dominate the market in the next trading sessions. “Profit taking is likely to continue in coming trading sessions. However, we expect some bargain hunting in anticipation of 2017 corporate earnings very soon,” FSDH Securities stated.

“In line with expectation, sell offs across sectors dragged the local bourse to close in the red. Following three weeks of positive gains, we expect profit taking to continue in subsequent trading sessions,” Afrinvest Securities stated.

Read also: N4.03tn generated by FIRS from tax in 2017, 720bn more than in 2016- Fowler

Nestle Nigeria-Nigeria’s highest-priced stock, led the decliners with a loss of N30 to close at N1,470. Unilever Nigeria followed with a drop of N2.80 to close at N44.20. Forte Oil declined by N1.78 to close at N50. Guaranty Trust Bank lost N1.20 to close at N53.51. UAC of Nigeria declined by 39 kobo to close at N17.10 while Eterna dropped by 28 kobo to close at N5.76 per share.

Total turnover however rose considerably with the exchange or 4.44 billion shares valued at N15.93 billion in 8,572 deals. Low-priced stocks continued to dominate activities chart. Transnational Corporation of Nigeria was the most active stock with a turnover of 3.86 billion shares worth N9.34 billion. Diamond Bank followed with a turnover of 85.77 million shares worth N297.94 million while FCMB Group placed third with 76.66 million shares valued at N267.06 million.

On the positive side, Beta Glass led the advancers with a gain of N2.82 to close at N59.38. PZ Cussons Nigeria followed with a gain of N1.10 to close at N23.10. International Breweries rose by n1 to close at N64. Cadbury Nigeria chalked up 93 kobo to close at N15.99 while Nigerian Breweries rose by 81 kobo to close at N143 per share.

 

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