Stock Market Value Decreases to N14.456trn

By Dipo Olowookere

The total value of stocks listed on the Nigerian Stock Exchange (NSE) decreased on Friday by N57 billion to N14.456 trillion from N14.513 trillion.

This reduction was majorly the handiwork of profit-takers, who pounced on the market, leading to a 0.39 percent decline at the close of transactions for the day.

Their activities also led to the shedding of 108.97 points by the All-Share Index (ASI) to 27,755.87 points from 27,864.84 points it ended the previous trading day.

Business Post reports that the 0.71 percent growth printed by the banking counter on Friday was not enough to have a positive impact on the bourse as the loss in the insurance sector and others suppressed this.

The insurance index reduced by 1.13 percent, the consumer goods space followed with a 0.20 percent loss, while the oil/gas sector went down by 0.19 percent, with the industrial goods industry falling by 0.07 percent.

An analysis of the price movement chart showed that Guinness Nigeria was the heaviest loser, depreciating by N2.80 to close at N25.20 per share, while GTBank declined by 95 kobo to settle at N29.90 per unit.

Furthermore, UAC Nigeria fell by 35 kobo to end at N9 per share, Zenith Bank lost 25 kobo to quote at N19.65 per unit, while SAHCO went down by 15 kobo to N2.87 per share.

On the gainers’ chart, Caverton took the highest price appreciation as its shares rose by 24 kobo to N2.74 per unit, while United Capital gained 8 kobo to sell at N2.94 per share, with the trio of Livestock Feeds, University Press and Law Union and Rock Insurance appreciating by 5 kobo to close at 70 kobo per share, N1.25 per share and N1.15 per share respectively.

At the close of business, a total of 19 stocks depreciated in value, while 9 equities appreciated, with five closing flat.

On the activity chart, things went south as the volume of shares transacted by investors reduced by 12.01 percent to 132.6 million units from 150.7 million units, while the value dropped 53.99 percent to N1.3 billion from N2.8 billion, with the number of deals going down by 0.28 percent to 3,189 from 3,198.

The major contributors to the trading volume were Zenith Bank (21.7 million shares worth N429.5 million), UAC Nigeria (21.2 million equities valued at N208.5 million), United Capital (20.6 million stocks worth N60.3 million), UBA (13.9 million shares valued at N108.1 million) and FBN Holdings (7.6 million equities worth N45.1 million).

Outlook

We expect investors to take advantage of the low prices of stocks at the market and expand their portfolios next week, leading to a likely positive start at the first trading session.