NSE: Market capitalisation lost N48bn, amid profit taking

NSE: Market capitalisation lost N48bn, amid profit taking

The Nigerian equities market resumed trading for the week on consolidation of a five-day losing streak with a loss of N48 billion. This was due to bargain hunting on the floor of the Nigerian Stock Exchange (NSE).

Specifically, the market capitalisation on Monday, June 10 shed N48 billion or 0.36 per cent to close at N13.354 trillion against N13.402 trillion.

Also, All-Share Index lost 109.94 points or 0.36 per cent to close at 30,322.19. This is against the 30,527.01 achieved on Friday.

The downturn was impacted by losses recorded in medium and large capitalised stocks; amongst which are Unilever Nigeria; Cement Company Northern Nigeria (CCNN); MTN Nigeria; Dangote Flour Mills; and Nigerian Aviation Handling Company (NAHCO).

Also Read: MTN confirms EFCC investigation over listing on NSE

Analysts at Afrinvest Limited said, “Given the negative trend in the equities market, a bearish performance was expected in the market to persist; but with opportunities for bargain hunting.”

Also, analysts at APT Securities and Funds Limited noted more. “We might see more down days during the trading week as more investors eye savings and a riskless asset.

“We, therefore, advise for cautious trading in the short run.

“However, the accumulation of fundamentally justified and dividend-paying stocks for the mid to long term is recommended.”

A breakdown of the price movement shows that Consolidated Hallmark Insurance and UACN Property Development Company recorded the highest price gain of 10 per cent each, to close at 22k and N1.65, respectively.

Sovereign Trust Insurance followed with a gain 8.70 per cent to close at 25k, while Japaul Oil & Maritime Services rose by eight per cent to close at 27k per share.

Forte Oil appreciated by 2.91 per cent to close at N26.50, per share.

Conversely, CCNN and Unity Bank dominated the losers’ chart by 10 per cent each, to close at N13.50 and 63k per share, respectively.

NAHCO followed with a decline of 9.73 per cent to close at N3.06; while Courteville Business Solutions by 9.09 per cent to close at 20k per share.

Cutix dropped by 8.75 per cent to close at N1.46 per share at the NSE.

It was also reported that the volume of shares traded dropped by 19.04 per cent. This happened with an exchange of 247.39 million shares valued at N3.48 billion in 3,434 deals.

This was in contrast with a turnover of 305.56 million shares worth N3.90 billion exchanged in 3,754 deals.

Zenith Bank was the toast of investors with 70.25 million shares valued at N1.42 billion.

Guaranty Trust Bank followed with an exchange of 23.1 million shares worth N706.05 million; while Ecobank Transnational traded 18.13 million shares valued at N177.72 million.

Custodian Investment sold million 15.71 million shares valued at N95.02 million, while FBN Holdings transacted 11.48 million shares worth N80.25 million.

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