Sustained Profit-Taking Weakens NGX Index by 1.88%

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited sank deeper into the danger zone on Wednesday after it further shed 1.88 per cent at the close of transactions.

It was observed that sustained profit-taking activity weakened the stock exchange yesterday as investor trimmed down their exposure to equities during the session.

This resulted in the level of activity going down, with the trading volume, value and the number of deals down by 33.50 per cent, 12.90 per cent, and 23.62 per cent, respectively.

This was because investors transacted 197.3 million shares valued at N2.7 billion in 3,506 deals compared with the 296.7 million shares valued at N3.1 billion transacted in 4,590 deals on Tuesday.

UBA finished the session as the most active stock after it traded 64.2 million units, as Transcorp traded 32.0 million units, Zenith Bank transacted 15.9 million units, Oando sold 10.0 million units, and Mutual Benefits exchanged 7.3 million units.

Business Post reports that the consumer goods sector was principally behind the downfall of the Nigerian exchange in the midweek session as it dropped 0.26 per cent to overturn the gains posted by the others.

The insurance counter appreciated by 0.88 per cent, the banking index grew by 0.49 per cent, the energy sector improved by 0.12 per cent, and the industrial goods sector went up by 0.04 per cent.

At the close of business, the All-Share Index (ASI) declined by 1,016.42 points to settle at 53,018.97 points compared with the previous day’s 54,035.39 points, while the market capitalisation shrank by N553 billion to close at N28.883 trillion, in contrast to Tuesday’s N29.436 trillion.

Investor sentiment remained weak on Wednesday as the bourse finished with 14 price losers and 11 price gainers, representing a negative market breadth.

Airtel Africa suffered the biggest loss during the session as it depleted by 10.00 per cent to close at N1,331.10, Ikeja Hotel dropped 9.85 per cent to N1.19, Multiverse fell by 9.59 per cent to N2.64, Royal Exchange lost 9.33 per cent to close at 68 Kobo, and Flour Mills dwindled by 4.84 per cent to N29.50.

On the other side, Coronation Insurance gained 7.50 per cent to close at 43 Kobo, Mutual Benefits appreciated by 6.25 per cent to 34 Kobo, CWG improved by 5.26 per cent to N1.00, Eterna rose by 4.46 per cent to trade at N5.85, and Cutix jumped by 3.60 per cent to N2.30.