NSE: Profit taking dips market by 0.95%

The Nigerian Equities market continued on a downward trend as lead key indicator the Nigerian Stock Exchange All-Share Index (NSE ASI) depreciated 0.95 per cent to close at 28,009.40 basis points on Wednesday in comparison to 0.20 per cent lost in previous session when the ASI closed at 28,277.93 basis points. This leaves year to date returns at 2.22 per cent.

Investors on the Nigerian equities market lost N92.2 billion as market capitalisation closed at N9.620 trillion compared to N20.5 billion lost on Tuesday when market capitalisation closed at N9.712 trillion.

The downward movement on the market was consequent on profit taking in Forte Oil Plc that lost N7.4 to close at N158.5 per share, PZ Cussons Plc which dropped N2.01 of its share price to close at N18.69 per share, and Dangote Cement Plc that fell by N1.99 to close at N181.01 per share. Unilever Nigeria Plc and Flourmill Nigeria Plc likewise lost N1.1 and N1.05 respectively to close at N45.9 and N20.05 per share.

Investor sentiment remained negative as market breadth closed with 20 gainers to 22 losers. PZ Cussons Plc led the list of declining stocks as it fell by 9.71 percent or N2.01 to close at N18.69 per share, Caverton Offshore Support Group Plc followed with a decline of 8.57 per cent or 6 kobo to close at 64 kobo per share.

Flourmills Nigeria Plc dropped by 4.98 per cent or N1.05 to close at N20.05 per share, while Nigerian Aviation Handling Company Plc decreased by 4.91 percent or 17 kobo to close at N3.29 per share and Dangote Flour Plc recorded a depreciation of 4.91 percent or 17 kobo to close at N3.29 per share.

On the other hand FCMB Plc led the day’s gainers with an appreciation of 6.31 percent or 7 kobo to close at N1.18 per share. This was followed by Okomuoil Plc and Diamond Bank Plc that added 5 percent each or N1.90 and 6 kobo respectively to close at N39.90 and N1.26 per share respectively. Transcorp Hotel Plc grew by 4.97 percent or 25 kobo to close at N5.28 per share, as 7up Plc improved by 4.89 percent or N6.80 to close at N145.80 per share.

Market activity as measured by Volume and Value traded, settled at 187.2 million units and N1.5 billion respectively compared to 198.1 million units and N1.317 billion traded previously.

Trading in the Top Three equities were Access Bank Plc with the sale of 30 million shares worth N164.5 million. FCMB Plc came second following the sale of 26.6 million units of shares worth N30.8 million and Zenith Bank Plc sold 20.9 million units valued at N316.4 million.

Equities investment analyst, however, advise investors to trade with caution as the current market mood and stock prices of most companies present good entry opportunities. “We advise investors to take advantage of the relatively low prices of stocks especially for companies who are market leaders in their various sectors of the market. However, we suggest that investments in equities should be focused on long term returns and advise that speculators and short term investors should trade with elevated caution.

We advise investors to trade with caution and maintain long-term investment strategy based on market fundamentals and not sentiments. More so, diversification across various sectors will help to increase investment returns and minimize market and sector risk.”