Market sees first dip in July

Nigeria’s stock investors are beginning to take profit from some counters after recent rally that pushed the market to new high.

Investors took profit from stocks like BUA Cement which decreased most, from N92.25 to N83.15, losing N9.10 or 9.86percent and PZ Cussons which dipped from N23 to N20.70, losing N2.30 or 10percent.

Wema Bank also decreased from N5.81 to N5.23, losing 58kobo or 9.98percent, while Transcorp dropped from N3.86 to N3.48, shedding 38kobo or 9.84percent.

At the close of trading session on Tuesday, July 4 the market recorded its first dip this month by 1.99percent or N672billion, thereby moderating the year-to-date (YtD) positive return to 18.47percent.

With most of the banking stocks hitting new year highs, market analysts at Lagos-based Vetiva research had ahead of Tuesday’s trading expects a cautious open, “as investors trade ahead of half-year (H1) 2023 results”.

Read also: Stock investors gain N534bn as market rallies into July

“After the drought comes plenty, or at least that is how it looks for investors in Nigeria’s listed banks. Some of the many restrictions on commercial banking activity, which were enforced over the past four years, are being eased and the result is a surge in confidence in the sector,” according to Coronation Research analysts in their July 3 note titled “A relief rally for banks”.

The Nigerian Exchange Limited (NGX) All Share Index (ASI) and Market Capitalisation decreased from preceding day’s highs of 61,949.24 points and N33.731trillion respectively to 60,715.04 points and N33.059trillion.

FCMB Group, Sterling Bank, Transcorp, UBA and Access Corporation were actively traded stocks as investors in 12,194 deals exchanged 1,107,340,750 shares valued at N12.209billion.