Profit taking depresses NSE index by 1.6%

Profit-taking by investors caused the equities segment of the Nigerian Stock Exchange to close on a negative note for the second straight session on Tuesday.

The NSE All-Share Index dipped by 1.6 per cent or 477.09 basis points to 29,393.77 basis points, one day after it shed 1.17 basis points to close at 29,870.86 basis points.

Consequently, its year-to-date return now stands at -15.19 per cent.

In the same vein, the market capitalisation of the listed equities declined by 1.6 per cent or N164bn to close at N10.108tn.

This came after investors traded 273.676 million shares worth N2.898bn in 3,733 deals.

In all, 24 stocks recorded price appreciation, while 23 stocks recorded price depreciation.

Vono Products topped the gainers, rising by 9.28 per cent or nine kobo to close at N1.06 per share.

It was followed by Trans-nationwide Express Plc, which rose by 7.14 per cent or seven kobo to close at N1.05 per share.

Stanbic IBTC Holdings Plc edged up by 5.45 per cent or N1.20 to close at N23.20 per share, while Transnational Corporation of Nigeria Plc and International Breweries Plc rose by 5.02 per cent and five per cent to close at N2.30 and N17.86 per share, respectively.

On the flipside, Dangote Cement Plc and Flour Mills of Nigeria Plc topped the losers’ table, shedding five per cent each to close at N165.30 and N22.06 per share, respectively.

PZ Cussons Nigeria Plc also declined by five per cent to close at N25.28 per share with Northern Nigeria Flour Mills Plc and Africa Prudential Registrars Plc falling by 4.97 per cent and 4.96 per cent to N9.95 and N2.49 per share in that order.

Before profit-taking activities became dominant, depressing the stock market on Wednesday, stocks had rallied for four straight sessions, boosting both market capitalisation and the NSE ASI significantly.

The Chief Executive Officer, Enterprise Stock Brokers, Mr. Rotimi Fakayejo, had, however, hinted that the gains would result in profit-taking in the short-term.

Fakayejo had attributed the gains to the low prices of stocks and other developments in the economy, including anticipation that ministers would be appointed this month.

“Since the president promised to constitute his cabinet in September and subsequently roll out economic policies, coupled with the fact that the stock prices are below the normal valuation of the companies, investors are just positioning themselves ahead of time,” he had said.

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Source : Punch

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