Equities market drops by N37bn

The equities market on Monday relapsed by N37 billion, halting six days of successive rally on the Nigerian Exchange Limited (NGX) following profit-taking activity.

In summary, the All-Share Index (ASI) declined by 67.98 basis points or 0.13 per cent to close at 54,299.76 basis points. Similarly, the overall market capitalization value lost N37 billion to close at N29.576 trillion.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Geregu Power, Dangote Cement, Nigerian Exchange Group, Ardova and UAC of Nigeria (UACN).

Market breadth closed negative as 26 stocks lost relative to 20 gainers. Conoil recorded the highest price gain of 10 per cent to close at N29.50 per share. MRS Oil Nigeria followed with a gain of 9.82 per cent to close at N21.25, while International Energy Insurance gained 9.35 per cent to close at N1.17 per share.

GlaxoSmithKline Consumer Nigeria  appreciated by 6.92 per cent to close at N6.95, while Wapic Insurance gained 4.65 per cent to close at 45 kobo per share.

On the other hand, Japaul Gold & Ventures led the losers’ chart by 9.38 per cent to close at 29 kobo, while FCMB Group followed with a decline of 7.82 per cent to close at N4.60 per share.

Royal Exchange shed 7.32 per cent to close at 76 kobo, while Linkage Assurance and UACN shed 6.12 per cent each to close at 46 kobo and N9.20 respectively per share.

Meanwhile the total volume of trades rose by 4.38 per cent to 200.035 million units, valued at N7.622 billion, and exchanged in 4,380 deals. Transactions in the shares of FCMB Group topped the activity chart with 27.983 million shares valued at N130.017 million. Geregu Power followed with 21.130 million shares worth N4.176 billion, while Sterling Bank traded 18.837 million shares valued at N28.934 million.

Transnational Corporation of Nigeria (Transcorp) traded 15.768 million shares valued at N21.164 million, while Zenith Bank transacted 14.670 million shares worth N366.988 million.

Reacting to the development, United Capital Plc said: “The market has rallied significantly, raising fears of an over-extended market. From our viewpoint, we see a case for sustained bullish sentiments as we anticipate downbeat money market yields till April while positive earnings results could further fuel buying appetite.

“However, technical indicators indicate Nigerian equities now have a greater downside potential than existing upside potential. As a result, we consider buying equities a ‘riskier’ rather than ‘wrong’ strategy, while favouring reducing portfolio exposures as the ideal approach.

“Consequently, we recommend investors exploit the waning flames of the rally to book profits on their portfolios as upside opportunities thin out.”


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