All-Share Index Sheds 0.15% as Profit Taking Halts Market Rally
The stock market yesterday pared gains as investors locked in profits recorded in recent days of bullish trading. This development led to a negative close with the Nigerian Stock Exchange (NSE) All-Share Index declining by 0.15 per cent to be at 32,413.92. Similarly, market capitalisation shed N18 billion to close lower at N12.1 trillion.
However, profit taking in bellwethers such as Guaranty Trust Bank Plc, Access Bank Plc and Seplat Petroleum Development Company Plc was majorly responsible for the decline.
In all, 22 stocks shed value led by C& I Leasing Plc with 9.9 per cent, trailed by Champion Breweries Plc with 9.5 per cent. United Capital Plc depreciated by 9.0 per cent, just as Consolidated Hallmark Insurance Plc went down by 7.1 per cent. Neimeth International Pharmaceuticals Plc lost 6.6 per cent. The company last week held its annual general meeting (AGM) in Lagos, where its chairman, ABC Orjiako said recognition of the forbearance shown by shareholders all the years without profit, the board has recommended for your approval a script of one ordinary share for every 10 held.
He said in 2016/17 financial year the company was challenged by adversity when fire gutted its raw materials warehouse on 7th March 2017.
“In one single year, 2017/18, we were able to overcome the crippling incident and are ready to resume our march forward. Your Board has restarted implementation of its management reset that commenced with the hiring of our former managing director three years ago. Her departure and the fire incident put a temporary halt to the execution of the comprehensive reset that would presage our growth strategy. We have completed the process leading to the engagement of a new MD/CEO who would join the company in the second quarter of this 2018/19 financial year,” he said. Meanwhile, Berger Paints Nigeria Plc and Unilever Nigeria Plc led the price gainers with 10 per cent apiece. Unity Bank Plc trailed with 9.4 per cent, just as Livestock Feeds Plc and Jaiz Bank Plc chalked up 9.0 per cent each.
Activity level also weakened as volume and value traded decreased by 18.95 per cent and 47.2 per cent as investors traded 470.4 million shares worth 4.24 billion. The top traded stocks by volume were Diamond Bank(131 million shares), Zenith Bank(44.08 million shares) and UBA (40.61 million shares) while the top traded stocks by value were Zenith Bank Plc (N1.09 billion), and Dangote Cement Plc (N653.67 million) and Guaranty Trust Bank Plc (N522.75 million).