Nigeria’s Stock Market Dips by N42bn over Profit-taking

Despite recording a turnover of 368.97 million shares exchanged in 4,598 deals on the floor of the Nigerian Stock Exchange (NSE), overall market capitalisation of equities depreciated by N42 billion in Wednesday’s trading to close at N18.32 trillion from N18.36 trillion.

This was as market sentiment returned to the red zone with investors beginning to take profits to increase capital gains. Bargain hunters also widened sell-offs to take profits from gains recorded last week.

In consequence, the All-Share Index shed 90.80 absolute points, rep­resenting a decline of 0.26 percent to close at 35,056.82 points. The downtrend was driven by price depreciation in me­dium and large capitalised stocks amongst which are; Ni­gerian Breweries, Chemical and Allied Products, Guaran­ty Trust Bank, Northern Ni­geria Flour Mills, and Flour Mills of Nigeria.

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Market sentiment, as mea­sured by market breadth, was negative, as 22 stocks de­clined, relative to 19 gainers. The premium subsector was the most active during the day (measured by turnover volume); with 162.20 million shares exchanged by investors in 1,620 deals.

Volume in the subsector was largely driven by activities in the shares of FBNH Plc and Access Bank Plc. AIICO Insurance recorded the highest price gain of 9.90 percent to close at N1.11 per share. Regency Alliance In­surance Company followed with a gain of 9.09 percent to close at 24 kobo, while FTN Cocoa Processors rose by 8.70 percent to close at 25 kobo per share.

On the flipside, C and I Leasing Nigeria Plc led the price losers’ table, dropping 9.90 percent to close at N4.46 per share. AXA-Mansard Insurance Plc followed with 9.70 percent to close at N2.14 per share while NNFM Plc posted a loss of 9.67 percent to close at N6.26 per share.