Trading closed Wednesday on the Nigerian stock market with yet another decline in the market benchmark indicator- All Share Index (ASI). The ASI dipped by 2.68percent, that represents 994.22 points, to close at 36,102.38 points against 337,096.60 points on Tuesday as the market responds to profit taking.
Sewa Wusu of Sterling Capital believes that the negative trend is due to profit taking.
“Investors have positioned themselves beforehand and now despite the recent positive results of the likes of Zenith Bank and GT Bank investors are getting weary and are taking profit” He further explained that “the market is is responding to whims of profit taking. The fatigue is waning the market as it hits the overbought zone, while investors are reaping gains from previous appreciation in price,” he said.
The analyst explained that the outlook for the market is still positive despite the present negative trend.
“The price of crude oil is also looking up and this improvement will culminate in economic recovery which will directly impact the market.
“in the immediate we will see and intermittent performance in the market until the next major catalysts when the third Quarter result (Q3),” he said.
At the close of trading on the floor of the Nigerian Stock Exchange (NSE), the value of listed equities lost about N342.677 billion to close at N12.443 trillion as against N12.786 trillion recorded Tuesday. A total of 224.773 million units of listed companies shares valued at N5.090 billion were transacted by investors in 4,822 deals.
Ten companies gained against 30 losers as the Year-to-date returns (Ytd) stood at 34.34 percent.
FBN Holdings Plc led yesterday activity chart as stock traders exchanged 34.466 million shares worth N206.834 million. Access Bank Plc followed by less than half trading 27.425 million shares worth N276.911 million. Guaranty Trust Bank Plc followed with 25.150 million shares valued at N970.777 million; while 15.082 million units of Jaiz BanK Plc shares worth N11.992 million were traded.
Also traded were 12.655 million units of Zenith Bank Plc shares valued at N284.670 million.
Nestle Nigeria Plc, led the gainers’ table adding N11.9 to close at N1220, from N1208 per share recorded Wednesday. Nascon Allied Industries Plc, followed with a gain of N0.31 from day open level of N11.69 to close at N12, while Union Bank Nigeria Plc appreciated by N0.21 to close at N6 per share, up from N5.79. Dangote Sugar Refinery Plc gained N0.13 to close at N12.8 from N12.67. VITAFORM Nigeria Plc increased by N0.12 to close at N2.83 per share, from N2.71.
Conversely, Dangote Cement Plc, Total Nigeria Plc, Nigerian Breweries Plc, Guinness Nigeria Plc and Stanbic IBTC Holdings Plc led the losers as Dangote Cement Plc share price declined by N11 to close at N214 per share, down from N225; Total Nigeria lost N9.55, from N236.55 to N227; while Nigerian Breweries declined by N5, from N190 to N185. Guinness declined by N1.93 to close at N87.96 from N89.89; while Stanbic IBTC Holdings depreciated by N1.92 to close at N37.08 per share, down from N38.95.
