Market decline

82.83 billion naira stock market decline on profit taking in Dangote Cement, 17 more

Darasimi Adebisi

Transactions in the Nigerian stock market yesterday closed the first trading session of the week on a negative note, falling to 82.83 billion naira as profit taking dominated all major sectors.

The aggregate market capitalization fell to 20.490 trillion naira from the 20.57 trillion naira it opened for trading, while the All-Share (ASI) index of Nigerian Exchange Limited (NGX) fell by 158.98 basis points, which is down 0.40% to close at 39,326.67. basis points versus 39,485.65 basis points.

On the sectors, the indices of industrial goods (-1.4%), oil and gas (-1.2%) and banking (-0.2%) fell, while consumer goods ( + 1.2%) and insurance (+ 0.8%) indices recorded gains.

The market loss was driven by the depreciation of the prices of large and mid-capitalization stocks, among which; Dangote Cement, Eterna, Oando, Ecobank Transnational Incorporated (ETI), Champion Breweries and Zenith Bank.

Measured by the scale of the market, market sentiment closed positively with 21 stocks winning versus 18 losing. Honeywell Flour Mills followed with a gain of 9.86% to close at N 3.90 per share. UACN Property Development Company (UPDC) followed with a gain of 9.84 percent to close at N 2.01 and Associated Bus Company rose 9.09 percent to close at 36 kobo, per share.

Presco rose 8.90% to close at N79.50, while FTN cocoa processors appreciated 8.33% to close at 52 kobo, per share.

On the other hand, Champion Breweries topped the losing chart by 7.73 percent to close at N 2.03 per share. Eterna followed with a decline of 7.20% to close at N 6.96, while Linkage Assurance lost 6.45% to close at 58 kobo, per share.

Oando lost five percent to close at N4.56, while Caverton Offshore Support Group lost 4.86 percent to close at N1.76, per share.

Total transaction volume increased 38.0% to 301.014 million units, valued at 1.535 billion naira and traded in 4,715 transactions.

Trading in shares of Transnational Corporation of Nigeria (Transcorp) led the activity chart with 51.691 million shares valued at 46.840 million naira. Honeywell Flour Mills followed with 43.733 million shares worth 167.914 million Naira, while Consolidated Hallmark Insurance traded 17.606 million shares worth 10.632 million Naira.

Oando traded 16.119 million shares worth 71.450 million naira, while the UPDC traded 15.114 million shares worth 29.913 million naira.

This week, analysts at United Capital Plc expected the sentiment pendulum to be swayed by the results of large banks’ audited numbers during the week.