Profit taking persists on NSE, market capitalisation loses N111bn

Activities on the nation’s bourse remained on a negative posture on Thursday with the market capitalisation dropping further by N111 billion, amid sell pressure in blue chips.

It was reported that the market capitalization which opened at N13.296 trillion shed N111 billion to close at N13.185 trillion.

In the same vein, the All Share Index (ASI) decreased by 229.18 points or 0.84 per cent to close at 27,085.69.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Beta Glass, Unilever Nigeria, Guinness Nigeria and Dangote Sugar Refinery.

The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, said he expected the trend to continue due to profit-taking.

Omordion also said that bargain hunters were taking advantage of low stock prices to position ahead quarterly financials.

“Discerning investors should latch onto it as a way of averaging down and recouping their investment immediately a recovery stage sets in,” he said.

Market breadth closed negative with 12 gainers compared with 18 losers.

Nestle one of the highly capitalised equities on the exchange led the losers’ chart in percentage terms, dropping 9.99 per cent to close at N1, 255.50 per share.

Beta Glass followed with a decline of 9.96 per cent to close at N53.80, while Courteville Business Solutions dipped 9.09 to close at 20k per share.

Unilever Nigeria lost 7.68 per cent to close at N24.65, while United Capital shed 4.31 per cent to close at N2 per share.

Conversely, Niger Insurance recorded the highest price gain of 10 per cent, to close at 22k per share.

Neimeth trailed with a gain of 9.09 per cent, to close at 48k while Caverton appreciated by 8.33 per cent to close at N2.60 per share.

Ecobank Transnational Incorporated (ETI) grew by 8.28 per cent to close at N7.85, while Law Union & Rock appreciated by 7.69 per cent to close at 42k per share.

The banking stocks dominated the activity chart with Guaranty Trust Bank emerging the most active with 44.62 million shares valued at N1.24 billion.

FBN Holdings followed with 17.38 million shares worth N93.68 million, while Fidelity Bank accounted for 11.22 million shares, valued at N19.06 million.

Transcorp accounted for 9.81 million shares worth N9.98 million, while Access Bank transacted 9.39 million shares valued at N69.17 million.

In all, the total volume traded declined by 14 per cent as investors bought and sold 151.19 million shares, worth N2.52 billion achieved in 2,895 deals.

This was in contrast with 175.78 million shares valued at N2.568 billion traded in 3,539 deals on Wednesday.