NSE Index Falls 0.65% as Trading Resumes on Bearish Note

Trading at the Nigerian equities market resumed on a bearish note yesterday as investors moved in to take profit on stocks that have recorded significant capital gains in past weeks.

The Nigerian Stock Exchange (NSE) All-share Index depreciated by 0.65 per cent to close lower at 37,950.96,while market capitalisa- tion shed N85.4 billion to be at N13.08 trillion. The market had resisted attempts by the bears to return last week to closed in the positive territory for the fifth consecutive week.

However, this week may be different as indications are strong that profit taking will dominate trading. Yesterday, 27 stocks depreciated while 18 appreciated. But the negative performance mostly resulted from bearish sentiments towards Dangote Cement Plc, the stock that controls about 30 per cent of the market capitalisation.

Reacting to the performance of the market on the first day of the week, analysts at Meristem Securities Limited said: “Bearish sentiments dominated the equities market in the day, as investors took profit on stocks that have appreciated in recent times particularly the large cap banking stocks. We expect a similar trend in the remaining trading days of the week.”

C & I Leasing Plc led the price losers’ table with 9.2 per cent, trailed by Total Nigeria Plc and Med-View Airline Plc with 5.0 per cent apiece. May & Baker Nigeria Plc and Flour Mills of Nigeria Plc declined by 4.8 per cent, just as Neimeth International Pharmaceuticals Plc and Jaiz Bank Plc closed 4.7 per cent lower each. N.E.M Insurance Plc and Nigerian Aviation Handling Company Plc went down by 4.5 per cent and 4.3 per cent in that order.

Fidson Healthcare Plc led the stocks that recorded gains with 4.6 per cent, followed by A.G Leventis Plc with 4.3 per cent. Linkage Assurance Plc added 4.0 per cent , just as Union Bank of Nigeria Plc, Unity Bank Plc and Dangote Flour Mills Plc garnered 3.9 per cent, 3.4 per cent and 3.2 per cent respectively among others. Apart from the indeed that fell, the volume and value of of transactions also declined by 10.6 per cent and 32.9 per cent in that order. Investors traded 316.122 million shares worth N4.224 billion in 4,113 deals compared with 353.645 million shares valued at N6.301 billion exchanged in 4,079 deals last Friday.