Stock market fails to sustain gains

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Nigeria’s stock market was unable to sustain gains recorded the preceding trading day as many investors chose to take profit in some bellwether stocks.

A late session dip in Dangote Cement Plc reversed earlier session gains, causing the stock market to retreat after gaining for the three consecutive sessions at the end of last week.

At the sound of closing gong on the Nigerian Stock Exchange (NSE) on Monday April 15, the All Share Index (ASI) and equities market capitalisation decreased from preceding day high of 29,560.47 points and N11.103 trillion to 29,495.91 points and N11.078trillion respectively.

The ASI was down by 0.14percent while the market cap lost N28billion. Year-to-date (ytd), the market return is in negative of 6.08percent.

Bond market capitalisation closed at N10.750trillion while the value of listed Exchange Traded Fund (ETFs) stood at N5.621billion. Nestle Nigeria Plc declined most from N1456 to N1452.2, losing N3.8 or 0.26percent.

Flourmills Nigeria Plc followed after its share price dropped from N16.85 to N16.4, losing 45kobo or 2.67percent. FBN Holdings Plc also dipped from N7.5 to N7.25, losing 25kobo or 3.33percent.

Dangote Cement Plc followed after its share price moved down from N189 to N186, losing N3 or 1.59percent. Flourmills Nigeria Plc was also down, from N16.85 to N16.4, losing 45kobo or 2.67percent.

ETI Plc also decreased from N10.7 per share to N10.35, down 35kobo or 3.27percent, while UBA Plc dipped from N6.5 to N6.2, losing 30kobo or 4.62percent.

On the gainers table, Nigerian Breweries Plc advanced most from N60.2 to N64, adding N3.8 or 6.31percent. Cement Company of Northern Nigeria Plc followed after its share price advanced from N16 to N16.9, adding 90kobo or 5.63percent. Cadbury Nigeria Plc also rallied from N10.1 to N11, adding 90kobo or 8.91percent.

Dangote Flourmill Plc advanced from N8.4 to N9.2, adding 80kobo or 9.52percent. PZ Cussons Nigeria Plc increased from N8.85 to N9.45, adding 60kobo or 6.78percent.

“We expect to see profit taking activities in some bellwether stocks which could potentially drive negative returns in the NSE ASI. However, we maintain a cautiously optimistic outlook as investors’ sentiment show signs of improvement”, said Afrinvest Research analysts in their April 15 note.

Also, Vetiva research analysts who foresaw the index gaining at the beginning of this week in the absence of unforeseen events said they expect market activity to remain low to average “as market players remain cautious”.

Sovereign Trust Insurance Plc, Chams Plc, Union Ban Plc, GTBank Plc and UBA Plc were actively traded stocks on the Exchange. In 3,175 deals stock traders exchanged 223,777,641 units valued at N1.785billion.

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