Equity Market Opens Second Half with N21b Loss
Nigerian equities opened trading for the second half with a streak of profit-taking as investors looked ahead to the second quarter earnings season.
Average return at the equities market dropped by 0.04 per cent, equivalent to net capital depreciation of N21 billion.
The negative overall market position was largely due to selloffs on mid and large value stocks, most of which had recorded considerable gains in recent period.
The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), dropped from its opening index of 100,057.49 points to close at 100,020.83 points.
Aggregate market value of all quoted equities declined from its opening value of N56.601 trillion to close at N56.581 trillion.
There were 28 losers to 20 gainers. E-Tranzact International led the losers with a drop of 10 per cent to close at N4.50 per share. Fidson Healthcare followed with a decline of 9.70 per cent to close at N13.50. Cornerstone Insurance dropped by 9.52 per cent to close at N1.90 per share. Lasaco Assurance depreciated by 9.41 per cent to close at N2.31 while UPDC Real Estate Investment Trust dipped by 8.26 per cent to close at N5 per share.
On the positive side, Linkage Assurance recorded the highest gain of 10 per cent to close at N1.10 per share. Africa Prudential followed with a gain of 9.76 per cent to close at N9. Unity Bank rose by 9.74 per cent to close at N1.69 per share. Coronation Insurance increased by 8.96 per cent to close at 73 kobo while Sovereign Trust Insurance gained 8.89 per cent to close at 49 kobo per share.
The momentum of activities slowed down considerably as total turnover dropped by 46.11 per cent to 274.683 million shares valued at N3.713 billion in 10,112 deals. United Capital led the activity chart with 26.639 million shares worth N737.255 million. Linkage Assurance followed with 23.913 million shares valued at N26.302 million. AIICO Insurance placed third with 14.214 million shares valued at N14.316 million. CWG recorded 11.448 million shares worth N89.398 million while Universal Insurance saw exchange of 11.120 million shares worth N4.039 million.
Most analysts expected the market sentiment to be shaped by the second quarter earnings of quoted companies, and the direction of yields at the fixed-income market.
Analysts at United Capital Plc said the market would be mixed as investors explore opportunistic investment strategy.
“Thus, we anticipate cherry picking of fundamentally sound stocks to persist in the week ahead. Similarly, market activities will increase due to ongoing banks recapitalisation, second quarter filing, and envisaged corporate actions in the weeks ahead.
“Conversely, elevated interest rates in the fixed income market are expected to continue to negatively impact the equities market in the week as investors continue to take advantage of high interest rates in the fixed income space.
“Overall, fund managers and investors should continue to adopt an opportunistic investment strategy to take advantage of opportunities the market presents at each given time,” United Capital stated.
