Stock Market Index Depreciates Amid Profit-taking
Transactions on the equity sector of the Nigerian Stock Exchange sustained a sliding profile, as more blue-chip stocks joined the league of losers, causing the All-share index to dip further by 0.15 per cent.
Specifically, at the close of trading yesterday, the ASI shed 59.08 absolute points or 0.15 per cent to close at 38,605.07 points. Also, the market capitalisation declined by N21 billion to close at N13.985 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Seplat Petroleum Development Company, Nigerian Breweries, Cement Company of Northern Nigeria (CCNN), Guaranty Trust Bank and Custodian and Allied Insurance.
Analysts attributed the drop in indices to profit taking by investors as they leverage on the marginal gains recorded so far to recoup their investment.
Precisely, analysts at APT Securities and Funds Limited said: “Gains so far remain choked within the red region.
However, we expect positive stance to recoup gains as it appears there is still more room for an upward trend as the index dropped 0.15 per cent under waters yesterday, which indicates an improvement when compared with previous down consecutive days.”
Further review of yesterday’s trading showed that market breadth closed positive, with 23 gainers versus 20 losers.
Prestige Assurance recorded the highest price gain of 10 per cent, to close at 66 kobo per share.
C and I Leasing followed with a gain of 9.34 per cent to close at N1.99, while Eterna appreciated by 8.93 per cent to close at N7.20 per share.
Japaul Oil rose by 7.50 per cent to close at 43 kobo, while Mutual Benefit Assurance gained 6.25 per cent to close at 34 kobo per share.
On the other hand, Seplat Petroleum Development Company led the losers’ chart by 4.99 per cent, to close at N717.20 per share.
Custodian and Allied Insurance shed 4.93 per cent to close at N5.01, while livestock depreciated by 4.60 per cent to close at 83 kobo per share.
Unity Bank declined by 4.35 per cent to close at 88 kobo and Union Bank shed 4.20 per cent to close at N5.70 per share.