Sell pressure drags market capitalisation by N65 billion
Specifically, at the close of trading yesterday, the market capitalisation dipped by N65billion to close at N16.089trillion against N16.154trillion on Friday, due to losses by major blue chips.
Also, the All-Share Index, which opened at 45,092.83, shed 180.30 points or 0.40 per cent to close at 44,912.53.
Analysts attributed the drop in indices to profit taking caused by sustained rally witnessed in the market over the last couple of weeks. According to them, the decline was due to profit taking sentiments that prevailed yesterday, as investors leveraged the capital appreciation recorded in the last few weeks to recoup their investment.
However, they advised that investors should go for equities with intrinsic value, especially during the current season when dividend payment is approaching.
“We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals. It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position.
“Market is in phases; know the cycles in order to manage your trading and investing risk. For stocks that should be on your shopping list to buy in this seasonality changes as the year winds down,” they said.
On the price movement chart, Nestle topped the losers’ chart, with 30 kobo to close at N14.70 per share. Unilever followed with a loss of 2.80 kobo to close at N44.20 per share. Forte Oil was down by 1.78 kobo to close at N50 per share.
Guaranty Trust Bank declined by 1.20 kobo to close at N53.51 per share. UACN lost 39 kobo to close at N17.10 per share.
On the other hand, Beta Glass emerged the day’s highest price gainer with 2.82 kobo to close at N59.38 per share. PZ industries followed with a gain of 1.10 kobo to close at N23.10 per share. International Breweries appreciated by 1.00 kobo to close at N64 per share.
Cadbury grew by 93 kobo to close at N15.99 per share. Nigerian Breweries gained 81kobo to close at N143 per share.
However, the volume of shares traded rose by 231.34 per cent, as investors bought and sold 4.44 billion shares valued at N15.93billion in 8,572 deals against a turnover of 1.34 billion shares worth N8.63billion shares exchanged in 9,053 deals on Friday.
Transcorp was the most active stock during the day, exchanging 3.86 billion shares worth N9.34billion. Diamond Bank came second accounting for 85.77 million shares worth N297.94million.
FCMB Group traded 76.66 million shares valued at N267.06million. Fidelity Bank sold 69.05 million shares worth N266.04million, while FBN Holdings traded 57.73 million shares valued at N785.72million.
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