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Profit-taking drags down equities’ value by N85bn

By Michael Eboh
The upward trend in  the Nigerian Stock Exchange (NSE) was punctuated, Tuesday, as the value of listed equities dipped by N85.02 billion.

Equities’ value, represented by the market capitalisation, appreciated by 1.26 per cent to close at N6.67 trillion from N6.755 trillion at which it opened. The All-share index also shed 351.52 basis points to close at 27,578.34 points from 27,929.86 points.

Banks’ stocks were the worst hit, as 16 of the 20 banks’ stocks listed on the NSE recorded significant price depreciation. This forced down the NSE Banking index by 2.87 per cent to 445.25 points.

Also, the NSE 30 index shed 1.13 per cent to close at 1,117.56 points, NSE Food/Beverage index dropped by 1.21 per cent to 813.85 points and NSE Insurance index declined by 0.98 per cent to 208.12 points.

However, the NSE Oil/Gas index appreciated by five per cent to 358.18 points, as four major Petroleum Marketing stocks recorded significant price improvements.

The decline in the general performance of listed equities was occasioned by profit-taking activities of investors, which led to a decline in the prices of majority of the blue chip companies.

The trade-off for gains recorded over the past weeks, in the prices of quoted securities, brought about a drop in the prices of major highly capitalised stocks, led by Flour Mills Nigeria Plc, with a loss of N3.82 to close at N72.67 per share, PZ Cussons Nigeria Plc followed with a loss of N1.64 to close at N31.26 per share and Glaxo SmithKline Consumer Plc dipped by N1.38 to close at N26.63 per share.

Other share price losers include: Cement Company of Northern Nigeria Plc N1.22, Ashaka Cement Plc N1.21, First Bank of Nigeria Plc N0.85, GTBank Plc N0.85, Dangote Flour Mills Plc N0.68, National Salt Company Plc N0.54, Nigerian Breweries Plc N0.50 among others.

On the contrary, Total Nigeria Plc recorded the most share price gain, rising by N7.98 to close at N167.73 per share, Mobil Oil Nigeria Plc followed with a gain of N6.23 to close at N130.83 per share and Oando Plc garnered N5.25 to close at N110.25 per share.

Other share price gainers include: Nestle Nigeria Plc, with a gain of N2.32 to cross the N300 mark, as it closed at N300.10 per share, Conoil Plc N2.20, Lafarge Cement WAPCO Plc N2.19, UAC Nigeria Plc N2.19, African Petroleum Plc N2.06, Northern Nigeria Flour Mills Plc N1.96, Seven-up Bottling Company Plc N1.85 among others.

Equity trading appreciated by 2.48 per cent, as a turnover of 955.73 million shares valued at N6.67 billion was recorded in 12,054 deals, in contrast to the previous day’s turnover of 932.6 million shares valued at N5.99 billion in 15,310 deals.

The Banking sub-sector recorded the highest transaction in the sectorial analysis, accounting for 28.94 per cent of the market turnover, with 276.6 million shares valued at N3.4 billion in 4,542 deals. Zenith Bank Plc emerged the most active in the sub-sector, trading 67.28 million shares valued at N1.3 billion in 647 deals, followed by First Bank of Nigeria Plc with the exchange of 31.25 million shares valued at N511.12 million in 979 deals and GTBank Plc recorded 25.8 million shares valued at N588.9 million in 676 deals.

Mortgage Companies sub-sector, led by Resort Savings and Loans Plc, followed on the sectorial analysis, accounting for 24.85 per cent of the market turnover, with 237.53 million shares valued at N124.27 million in 100 deals. Resort accounted for 92.71 per cent of the sub-sector’s turnover, with 220.21 million shares valued at N110.1 million in 18 deals.


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