• Wednesday, February 28, 2024
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Market sheds N36bn as investors take profit on recent gains

Stocks take major breather in early trading on Wednesday

At the close of equities trading session on Thursday, the market decreased by 0.12 percent or N36billion as investors took profit from preceding day’s gain.

Stocks like GSK, Fidelity Bank, and Cornerstone led other counters on the sell-side of the bourse.
GSK dipped most after its share price moved from N6.95 to N6.40, shedding 55kobo or 7.91percent. Also, Fidelity Bank dropped from a high of N5.90 to N5.70, losing 20kobo or 3.39percent.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased from preceding day’s high of 54,427.05 points and N29.644trillion respectively to 54,359.90 points and N29.608trillion.

Universal Insurance, GTCO, Sterling Bank, AIICO and FBN Holdings were top-5 traded stocks on Thursday as investors in 3,339 deals exchanged 225,377,963 shares valued at N3.149billion.

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The stock market’s year-to-date (YtD) return decreased to 6.07 percent.

“The market has rallied significantly in consecutive months, raising fears of an over-extended market. We expect sustained bullish sentiments as we anticipate downbeat money market yields till second quarter (Q2) 2023 and positive earnings results could potentially drive buy-interest.

“However, as technical indicators point to a greater downside potential for equities, we consider buying equities a ‘riskier’ rather than ‘wrong’ strategy, while favouring reducing portfolio exposures as the ideal approach. Consequently, we recommend investors book profits on their portfolios as upside opportunities run thin,” United Capital research analysts said in their February 9 note to investors.