Investors Give up N672bn as Profit-Taking Overwhelms Stock Market

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited surrendered to the authority of the bears on Tuesday after it succumbed to profit-taking by 1.99 per cent at the close of business.

The stock market came under heavy selling pressure during the session, as investors quickly booked profit on equities that have gained additional weight in the past trading days.

This consequently chopped off N672 billion from the bourse, reducing its market capitalisation to N33.060 trillion from N33.732 trillion.

In the same vein, the All-Share Index (ASI) of the NGX shrank by 1234.20 points to 60,715.04 points from 61,949.24 points.

Business Post reports that the industrial goods sector cracked by 4.25 per cent during the trading day, as the banking index lost 3.88 per cent, with the consumer goods and insurance sectors falling by 1.35 per cent and 0.52 per cent apiece, while the energy counter expanded by 1.91 per cent.

The market breadth index was negative yesterday because the stock exchange finished with 33 price gainers and 44 price losers, indicating a weak investor sentiment.

PZ Cussons lost 10.00 per cent to trade at N20.70, Wema Bank crashed by 9.98 per cent to N5.23, BUA Cement depreciated by 9.86 per cent to N83.15, Transcorp slipped by 9.84 per cent to N3.48, and University Press slumped by 9.82 per cent to N2.48.

On the flip side, Consolidated Hallmark Insurance rose by 10.00 per cent to 99 Kobo, Eterna grew by 9.96 per cent to N25.40, Chams gained 9.88 per cent to quote at 89 Kobo, eTranzact chalked up 9.87 per cent to close at N7.79, and SAHCO moved up by 9.87 per cent to N12.25.

The volume of shares bought and sold yesterday stood at 1.1 billion units, 8.14 per cent lower than the 1.2 billion recorded a day earlier, the value of equities stood at N12.2 billion, 13.04 per cent lower than the N14.0 billion posted in the preceding day, as the number of deals increased by 0.54 per cent to 12,194 deals from 12,128 deals.

Analysis of the activity chart showed that FCMB topped with a turnover of 180.8 million shares worth N981.5 million, Sterling Holdings exchanged 107.5 million equities valued at N411.1 million, Transcorp transacted 105.9 million stocks valued at N381.0 million, UBA traded 87.3 million shares N1.1 billion, and Access Holdings sold 77.9 million stocks for N1.3 billion.