• Friday, March 29, 2024
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BusinessDay

Equities market records first loss in eight days, as new trading week commences

Nigerian equities

The equities market closed Monday 21, 2019 on a bearish note as the All-Share Index dropped marginally by some 0.88 percent. This came after investors gained about half of a trillion naira (N440bn) last week, following the extension of the Bull Run to seven days- the longest streak since December of 2017.

Monday’s performance was on the back of a decline in Dangote Cement which fell by 2.5 percent to close at N190 per share for the day.

‘’It is basically profit taking that we are seeing in the market,’’ Ayodeji Ebo, the Managing Director of Afrinvest Securities Limited, leading licensed broker dealer and subsidiary of Afrinvest (West Africa) Limited told Businessday.

Aluko Paul, analyst at MBC capitals shared same view, saying that ‘’Some bargain hunters who took position in Dangote cement and other good stocks last week cashed out to take profit, that is why the market trended downward today.’’

The analysts believe that there wouldn’t be any major sell-off before the election although post-election performance of the market, they insist, remains dependent on the outcome of the polls.

In today’s market, profit taking in Dangote Cement (-2.5%), Seplat (-7.99%) and Guaranty Trust (0.78%) among others, was sufficient to overturn gains in Cement Company of Nigeria, United Bank for Africa, First City Monument Bank and Sterling Bank stocks as the year-to-date return fell to -2.22 percent from Friday’s 1.38 percent.

 

SEGUN ADAMS & DAVID IBIDAPO