NSE ROUND-UP! Equities lose N104bn as profit-taking resurfaces

After three consecutive positive trading sessions, Nigerian equities came under sell pressure on Tuesday as investors turned round to unlock and monetise accrued capital gains. Benchmark indices at the Nigerian Stock Exchange (NSE) showed an average decline of 0.81 per cent, equivalent to net capital depreciation of N104 billion.

With almost a tit-for-tat pricing trend, the negative overall market position was largely due to profit-taking transactions on highly capitalised stocks across the various sectors. The top decliners included Dangote Cement, Nigeria’s most capitalised quoted company; Nigerian Breweries, Nigeria’s second most capitalised quoted company and Guaranty Trust Bank, Nigeria’s most capitalised financial institution.

Aggregate market value of all quoted equities dropped from its opening value of N12.726 trillion to close at N12.622 trillion. The All Share Index (ASI)-the common value-based index that tracks share prices, also declined from its opening index of 36,970.81 points to close at 36,669.61 points. The declined depressed the average year-to-date return to 36.45 per cent.

All sectoral indices also closed negative, underlining the overwhelming influence of the large-cap stocks on sectoral performance. The NSE Industrial Goods Index, where Dangote Cement is listed and NSE Consumer Goods Index, where Nigerian Breweries is listed, declined by 0.9 per cent each. The NSE Oil & Gas Index dropped by 0.5 per cent.

The NSE Insurance Index dropped by 0.4 per cent while the NSE Banking Index slipped by 0.1 per cent.

Read also: Again, inflation drops, eighth time since January, now 15.98%, –NBS report

“We attribute the day’s negative close to profit taking on recent gains in the equities market, however we expect an upturn in following sessions due to third quarter 2017 earnings releases,” Afrinvest Securities sounded upbeat on the outlook for next trading sessions.

There were 22 advancers against 21 decliners on Tuesday with Nestle Nigeria, Nigeria’s highest-priced stock, leading the decliners with a drop of N40.50 to close at N1,200 per share. 11, formerly Mobil Oil Nigeria, followed with a drop of N8.15 to close at N157.85. Dangote Cement lost N3.98 to close at N220. Okomu Oil Palm declined by N1.37 to close at N65. Nigerian Breweries dropped by 98 kobo to close at N162.02. Red Star Express lost 50 kobo to close at N4.96 while Guaranty Trust Bank dropped by 40 kobo to close at N41.70 per share.

On the positive side, International Breweries led the contrarian stocks with a gain of N2.42 to close at N44.31. Guinness Nigeria followed with a gain of 75 kobo to close at N100.75. UAC of Nigeria rose by 45 kobo to close at N16.95. Dangote Sugar Refinery gathered 26 kobo to close at N14.16 while Stanbic IBTC Holdings rose by 20 kobo to close at N43.20 per share.

Total turnover stood at 211.87 million shares valued at N4.74 billion in 3,890 deals. Fidelity Bank was the most active stock with 24.82 million shares valued at N36.91 million. Zenith Bank followed with 21.99 million shares worth N580.88 million while Guaranty Trust Bank placed third with 20.07 million shares worth N841.92 million.

 

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