Profit-taking Weakens Domestic Stock Market by 0.46%

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited succumbed to profit-taking activity on Monday, shelling 0.46 per cent at the close of business.

Selling pressure on banking stocks contributed to the downfall of the domestic stock market during the session as investors rebalanced their portfolios.

When trading activities ended by 2:30 pm yesterday, the All-Share Index (ASI) was down by 232.60 points to 50,489.73 points from 50,722.33 points as the market capitalisation decreased by N125 billion to N27.233 trillion from N27.358 trillion.

Business Post reports that the banking index dropped 1.10 per cent during the session, the industrial goods space lost 0.01 per cent, the insurance sector gained 1.36 per cent and the consumer goods counter improved by 0.17 per cent, with the energy index closing flat.

A total of 207.2 million equities worth N2.1 billion were traded in 4,234 deals on the first trading session of the week compared with the 148.8 million equities worth N1.9 billion transacted last Friday in 4,091 deals, indicating an improvement in the trading volume, value and number of deals by 39.24 per cent, 10.07 per cent and 3.50 per cent respectively.

FBN Holdings was the most traded stock yesterday, trading 74.6 million units valued at N820.2 million, Multiverse transacted 20.5 million valued at N38.5 million, Access Holdings exchanged 12.4 million units worth N111.2 million, AIICO Insurance sold 11.6 million units for N6.4 million, while Zenith Bank traded 10.2 million units worth N219.2 million.

The market breadth was negative yesterday as 15 stocks depreciated in value while 10 stocks appreciated in price, representing a weak investor sentiment.

RT Briscoe lost 10.00 per cent to sell at 36 Kobo, IMG fell by 9.84 per cent to trade at N8.25, Skyway Aviation depreciated by 9.60 per cent to N5.65, Ellah Lakes declined by 9.60 per cent to N3.58, while Caverton decreased by 6.84 per cent to N1.09.

On the flip side, Japaul was the best-performing stock, rising by 8.82 per cent to 37 Kobo, Honeywell Flour appreciated by 5.73 per cent to N2.95, Cornerstone Insurance increased by 5.63 per cent to 75 Kobo, Lasaco Assurance gained 5.38 per cent to settle at 98 Kobo, while United Capital improved by 4.49 per cent to N12.80.