Market Capitalisation Sheds N116bn as Bellwether Stocks Decline

The equities market shed N115.9 billion yesterday to close on bearish note as bellwether stocks came under the pressure of profit taking. Similarly, the Nigerian Stock Exchange (NSE) All-Share Index declined by 0.91 per cent to close at 36,584.44.

Although there were more price gainers (27) as against 16 price losers, losses recorded by bellwether stocks such as Dangote Cement Plc, Zenith Bank Plc, Nestle Nigeria Plc, FBN Holdings Plc among others caused the decline in market value.

According to analysts at Meristem Securities Limited, in spite of the price appreciation recorded on a number of tickers, the Nigerian bourse began the week on the negative note largely on the back of the profit taking witnessed on Dangote Cement. They said they expect a continuation of the current mixed sentiments in the coming trading days. The market had three negative trading days and two positive days last week. But gains recorded in the two days were enough to offset the losses, hence the market closed last week with a decline of 3.4 per cent.

And as trading resumed for this week, the market opened with a decline of 0.91 per cent yesterday. Vitafoam Nigeria Plc led the price losers with 5.0 per cent, trailed by AXA Mansard Insurance Plc with 4.8 per cent. SCOA Nigeria Plc went down by 4.7 per cent. Paintcom shed 4.6 per cent, just as Skye Bank Plc and Dangote Cement Plc dipped by 4.4 per cent and 4.1 per cent in that order.

On the positive side, Flour Mills of Nigeria Plc led with 8.7 per cent, trailed by Transcorp Plc with 5.9 per cent. Honeywell Flour Mills Plc and Dangote Flour Mills Plc appreciated by 5.0 per cent each, just as LearnAfrica Plc and Nigerian Aviation Handing Company Plc chalked up 4.9 per cent and 4.8 per cent in that order.

Market performance across sectors showed that two sectors closed negatively, while two ended in the bulls’ territory. The NSE Banking Index advanced the most, up rising by 0.8 per cent due to price appreciation in GTBank and Ecobank Transnational Incorporated. Similarly, the Consumer Goods Index expanded 0.7 per cent. On the flip side, the NSE Industrial Goods Index led with 2.3 per cent while the NSE Insurance Index slid The Oil & Gas index closed the day flat.