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Profit Taking Takes Toll On Exchange As Indices Dip By N49 Billion

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Transactions on the equities sector of the Nigerian Stock Exchange (NSE) reversed the upward trend to close on a downturn yesterday, following price depreciation suffered by major highly capitalised stocks, causing market capitalisation to dip by N49 billion.

Specifically, at the close of transactions yesterday, , the All-Share Index (ASI) shed 135.32 absolute points or 0.35 per cent to close at 39,031.72 points. Also, the market capitalisation declined by N49 billion to close at N14.139 trillion.

The depreciation was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nigerian Breweries, Dangote Sugar, Zenith Bank, FBN Holdings and UBA.

Analysts attributed the drop in indices to profit taking by investors on the exchange. According to them, investors leveraged the price appreciation recorded in the past few days to recoup their investment.

Despite the decline, they reiterated that stock prices remain attractive, making room for bargain hunting in value stocks, amidst still-positive macro-economic fundamentals.

Further breakdown of yesterday’s trading showed that market breadth closed negative, with 20 gainers versus 22 losers. Japaul Oil recorded the highest price gain of 5.88 per cent, to close at 36 kobo per share. UAC Property followed with a gain of 4.98 per cent to close at N2.11, while Prestige Assurance rose by 4.92 per cent to close at 64 kobo per share.

Learn Africa gained 4.86 per cent to close at N1.51, while Equity Assurance appreciated 4.55 per cent to close at 23 kobo per share.

On the other hand, Diamond Bank led the losers’ chart by five per cent, to close at N1.52 per share. AIICO Insurance shed 4.62 per cent to close at 62 kobo, while Unity Bank depreciated by 4.35 per cent to close at 88 kobo per share.

Skye Bank declined by 3.95 per cent to close at 73 kobo and United Capital also shed 3.95 per cent to close at N3.16 per share.

However, the total volume traded appreciated by 33.68 per cent to 456.49 million shares, worth N4.13 billion, and traded in 3,517 deals. Transactions in the shares of UBA topped the activity chart with 90.62 million shares valued at N998.23 million. United Capital followed with 78.69 million shares worth N258.35 million, while Africa Prudential traded 72.1 million shares valued at N312.6 million.

Access Bank traded 26.28 million shares valued at N282.27 million, while African Alliance Insurance transacted 23.3 million shares worth N4.66 million.

http://www.akelicious.net/2018/06/profit-taking-takes-toll-on-exchange-as.html

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