NSE Market Capitalisation Sheds N187 bn on Continuing Profit Taking

By rainbow Market Update

NSE Market Capitalisation Sheds N187 bn on Continuing Profit Taking

NSE Market Capitalisation Sheds N187 bn on Continuing Profit Taking

Profit taking at the stock market continued yesterday as more stocks shed value under sell pressure. A total of 43 equities depreciated while only 14 appreciated. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell by 1.16 per cent to close at 44,389.85, while market capitalisation shed N187 billion to close at N15.9 trillion.

The market had recorded an unprecedented rally since the beginning of the year lifting share prices to new high before profit taking set in on Monday.

The bears strengthened their hold on the market as more investors moved to lock in profits.

Before now, analysts had said: “Although the market had sustained a three-week long bullish momentum on the back of increased investor participation following the uptrend in global oil prices and in expectation of improved earnings at the commencement of fourth quarter earnings season, we expect some slight profit taking in the coming week.”

The decline of yesterday partly resulted from depreciation recorded in the share prices of GTBank, FBN Holdings, Dangote Cement, Zenith Bank and Transcorp Plc.

Commenting on the market, analysts at FSDH said: “There was sell pressure in the equity market, a combination of profit taking and price corrections predominantly in the banking sector stocks. The downward trend may likely continue till midweek.”

Meanwhile, Fidelity Bank Plc led the price losers with 9.16 per cent, trailed by A.G Leventis Nigeria Plc with 9.0 per cent. Linkage Assurance Plc shed 8.7 per cent, while Transcorp Plc, FBN Holdings Plc and FCMB Group Plc went down by 5.7 per cent, 5.3 per cent and 5.2 per cent in that order.

Diamond Bank Plc, Julius Berger Nigeria Plc, Redstar Express Plc and University Press Plc closed 5.0 per cent lower apiece.

On the other side, Skye Bank Plc led the price gainers with 9.9 per cent, trailed by Caverton with 9.8 per cent. Unity Bank Plc garnered 9.2 per cent, just as UACN Property Development Plc, Unilever Nigeria Plc and Cutix Plc chalked up 5.0 per cent each.

In terms of sectoral performance, three sectors declined, while two appreciated.

The NSE Banking Index led the losers with 2.6 per cent as GTBank (-2.8 per cent), Zenith Bank (-2.3 per cent) and UBA (-5.0 per cent) declined. The NSe Insurance Index shed 2.4 per cent, while NSE Goods Index went down by 0.7 per cent.

On the flip side, the NSE Consumer Goods Index led the gainers with 0.7 per cent, followed by NSE Oil & Gas Index with 0.1 per cent.

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