Goddy Egene
The equities market shed N463.7 billion last week as the bullish streak was halted by persistent profit taking. Following the unprecedented growth recorded in the month of November, many investors have been locking in profits. Despite the pockets of profit taking, the market had maintained a positive weekly performance.
However, that positive momentum could not be sustained last week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) went down by 2.5 per cent to close at 34,250.74. Similarly, market capitalisation shed N463.7 billion to be at N17.902 trillion.
The year-to-date (YTD) growth moderated to 27.6 per cent.
Although the profit taking is expected to continue, analysts remained optimistic, saying the market still offers better investment alternative.
“We expect the profit taking and negative reaction to the unanticipated front-end supply from the Central Bank of Nigeria (CBN) to be short-lived.
“Yields in the fixed income market remain relatively unattractive, and we expect this to remain positive for stocks. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” analysts at Condros Research said.
Meanwhile, investors traded 2.265 billion shares worth N20.990 billion in 23,722 deals last week, compared with 1.675 billion shares valued at N25.425 billion that exchanged hands in 23,650 deals the previous week.
The Financial Services industry closed the most active, leading with 1.884 billion shares valued at N14.933 billion traded in 13,602 deals; thus contributing 83.2 per cent and 71.2 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 116.400 million shares worth N2.817 billion in 3,474 deals, just as the third place was occupied by the Conglomerates Industry, with a turnover of 107.803 million shares worth N231.323 million in 897 deals.
In all, 46 stocks depreciated, higher than the 45 equities recorded the previous week, while 13 equities appreciated, lower than 22 equities recorded the previous week.
Regency Assurance Plc led the price losers with 16.6 per cent, trailed by University Press Plc that shed 14.2 per cent. Neimeth International Pharmaceuticals Plc went down by 12.3, just as Lafarge Africa Plc and Transcorp Hotels Plc lost 10.6 per cent and 10 per cent in that order. Portland Paints & Products Nigeria Plc and Ardova Plc dipped by 9.9 per cent and 9.6 per cent respectively.
Other top price losers included: NPF Microfinance Bank Plc (9.4 per cent); The […]
