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NGX: Stock market investors lose N81 billion to profit-taking

The logo of the Nigerian Stock Exchange is pictured in Lagos, Nigeria, file. REUTERS-Afolabi Sotunde

Trading on the Nigerian Exchange Limited (NGX), yesterday, closed the first trading session of the week on a negative note, as NSE-All-Share Index (ASI) declined by N81 billion or 0.40 per cent.

The decline follows the investors’ profit-taking on some recently appreciated stocks, such as Stanbic IBTC Holdings and 19 others.

In summary, the All-Share Index (ASI) declined by 153.84 absolute points, representing a decrease of 0.40 per cent to close at 38,712.55 points. Similarly, the overall market capitalisation value lost N81 billion, representing a drop of 0.37 per cent to close at N20.260 trillion, following the listing of additional 2.43 billion ordinary shares of e-Tranzact Plc at N1.50 per share.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are Stanbic IBTC Holdings, Okomu Oil, Guinness Nigeria, Nigerian Breweries and Custodian Investment.

This week, analysts at United Capital Plc said: “We expect further sell-offs in the equities market as we expect rates at the long end of the curve to tick higher at the Central Bank of Nigeria’s NTB primary market auction on Wednesday.”

As measured by market breadth, market sentiment remained negative, as 20 stocks declined relative to 16 gainers. Japaul Gold and Ventures recorded the highest price gain of 9.52 per cent to close at 69 kobo, while UACN Property Development Company followed with a gain of 9.33 per cent to close at 82 kobo, per share.

Africa Prudential and Royal Exchange appreciated by 8.33 per cent each, to close at N5.85 and 39 kobo respectively, while Sterling Bank gained 7.69 per cent to close at N1.68, per share.

On the other hand, Stanbic IBTC Holdings led the losers’ chart by 4.80 per cent to close at N43.50, per share. Guinness Nigeria followed with a decline of 9.93 per cent to close at N26.75, while Custodian Investment shed 8.40 per cent to close at N6.00, per share.

Nigerian Aviation Handling Company (NAHCO) shed 7.73 per cent to close at N2.03, while PZ Cussons Nigeria depreciated by 5.15 per cent to close at N4.60, per share.

Meanwhile, the total volume of trades increased marginally by 0.17 per cent to 194.024 million units, valued at N1.364 billion, and exchanged in 4,290 deals.

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