Market records first dip as investors sell banks, industrial, consumer goods stocks

The stock market on Wednesday recorded its first negative close this week as investors gradually take profit in major gainers.

The market moved into the negative territory as investors sold mostly banking, consumer goods and industrial stocks despite bargain hunting in insurance and oil & gas stocks.

At the close of trading, the stock market decreased by 0.13 percent, moderating the year’s return to 41.72 percent, while this month’s return dropped to 4.29 percent.

“Macro drivers step back into focus as H2 positioning resets. We’re seeing orderly profit-taking in H1 winners, rotation not de-risking. With rates drifting lower and liquidity steady, the equity risk premium still favours the buy side, so pullbacks look like opportunity.

“We note that momentum is cooling and realised volatility is normalising, but trend structures remain intact. We anticipate that smart money will buy the dip in quality names, letting the market hand them attractive entry prices,” according to Lagos-based Vetiva research analysts in their July 12 post-trading note.

Read also: New Act sparks investor rush into insurance stocks

Thomas Wyatt decreased the most after its share price moved from N3.80 to N3.42, down by 38kobo or 10 percent. UPDC also made the major laggards league after its share price decreased from N8.69 to N8, losing 69kobo or 7.94 percent.

Legend Internet moved down from N5.98 to N5.60, losing 38kobo or 6.35 percent. Berger Paints decreased from N34.10 to N32, losing N2.10 or 6.16 percent, while Champion Breweries decreased from N17.38 to N16.38, shedding N1 or 5.75percent.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation decreased from preceding trading day’s highs of 146,055.89 points and N92.405 trillion respectively to 145,864.8 points and N92.284 trillion. In 30,749 deals, investors exchanged 1,341,810,876 shares valued at N20.215billion. Universal Insurance, Japaul Gold, Veritas Kapital, Access Holdings, and Sterling Financial Holdings Company were actively traded.