How investors’ profit-taking down stocks market by 1.19%


Due to investors’ profit-taking in Dangote Cement Plc, MTN Nigeria Communication plc, and others on the Nigerian Stock Exchange (NSE) depreciated the equities market by 1.19 per cent last week.

The equities market depreciated amidst profit-taking in two most capitalized listed companies on the bourse, leading to the NSE premium index dropping by 1.45 per cent or 31.48 basis points to 2,137.83 basis points last week. 

Specifically, the share price of Dangote cement dropped by 1.89 per cent or N2.70 to N140 last week from N142.70 it opened for trading while MTN Nigeria Communication’s also dropped by 2.29 per cent or N2.70 to N115.3 from N118 the market started last week.

In addition to the decline in the NSE premium index, the share price of FBN Holdings sheds 2.26 per cent or N0.15 to N6.50 from N6.65 per share while United Bank for Africa plc share price down by 1.49 per cent or N0.1 to N6.60 from N6.70 per share. 

 Consequently, the NSE All-Share Index dropped by 1.19 per cent or 319.31 basis points to 26,536.21 basis points from 26,855.52 basis points while the market capitalization also depreciated by 1.19 per cent or N154 billion to close last week at N12.808 trillion from N12.962trillion the equities market opened for trading last week. 

All other indices finished lower with the exception of NSE Pension, NSE Insurance, NSE-AFR Div Yield, NSE MERI Value and NSE Oil and Gas indices which appreciated by 0.02 per cent, 0.03 per cent, 2.09 per cent and 2.06 per cent and 0.03 per cent respectively.

Our correspondent gathered that investors in the equities market so far in 2019 have lost 15.57 per cent of the investment in the equities market over foreign investors exit and this year’s general elections that caused economy uncertainties.

According to NSE weekly report, a total turnover of 1.044 billion shares worth N14.628 billion in 14,974 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 952.697 million shares valued at N12.774 billion that exchanged hands in the prior week’s transactions in 17,279 deals.

The report stated that the “financial services industry (measured by volume) led the activity chart with 556.905 million shares valued at N5.678 billion traded in 8,267 deals; thus contributing 53.33per cent and 38.81 per cent to the total equity turnover volume and value respectively.

“The Healthcare industry followed with 215.030 million shares worth N122.603 million in 412 deals. The third place was the Conglomerates industry with a turnover of 89.601 million shares worth N466.294 million in 874 deals.

“Trading in the Top Three Equities namely, Union Diagnostics and Clinical Services Plc, United Bank for Africa Plc and Guaranty Trust Bank Plc. (measured by volume) accounted for 379.095 million shares worth N3.066 billion in 1,704 deals, contributing 36.30per cent and 20.96 per cent to the total equity turnover volume and value respectively.”

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