The market capitalisation of listed equities yesterday shed N85billion in six hours of trading to what traders attributed to profit taking as a result of the presidential poll.
Specifically, the market capitalisation, which opened at N12.194 trillion, shed N85 billion or 0.69 per cent to close at N12.109 trillion. The All Share Index (ASI) shed 226.30 absolute points, representing a dip of 0.69 per cent to close at 32,473.82 points.
Chief operating officer, InvestData Ltd., attributed the market pullback to profit taking embarked by some smart investors. Mr Omordion said the smart money that pushed the market up with expectations that the opposition would win the presidential election were leaving the market.
He said some investors who entered the market in anticipation that the opposition economic policy and reforms would support market growth were taking profit ahead of earnings season.
“This pullback may not last as a result of 2019 dividend declaration season as dividend yield of financial service stocks are high and attractive due to low prices,” Mr Omordion stated.
Accordingly, the year-to-date loss increased to 4.44 per cent. Similarly, the market capitalisation shed N84 billion at N12.110 trillion.
Yesterday’s performance was influenced by price depreciation in medium and large capitalised stocks, among which are, Nestle Nigerian Union Bank of Nigeria, FBN Holdings, United Bank for Africa (UBA) and GlaxoSmithKline Consumer Nigeria.
Market breadth closed slightly positive with 21 gainers against 20 losers. Africa prudential recorded the highest price gain of 10 per cent, to close at N4.84, per share. Oando followed with a gain of 9.85 per cent, to close at N7.25, while AG Leventis & Company rose by 9.68 per cent to close at 34 kobo, per share.
Cutix appreciated by 9.63 per cent to close at N2.05, while Newrest ASL Nigeria went up by 9.30 per cent to close at N7.05, per share. On the other hand, NPF Microfinance Bank led the losers’ chart by 9.70 per cent, to close at N1.49, per share. Union Bank followed with a decline 8.28 per cent to close at N6.65, while Japaul Oil & Maritime Services declined by 7.41 per cent to close at 25 kobo, per share.
Wema Bank declined by 6.59 per cent to close at 85 kobo, while Associated Bus Company down by 5.26 per cent, to close at 54 kobo, per share.
However, total volume traded went up by 46.6 per cent to 322.18 million units, valued at N2.43 billion, and exchanged in 4,066 deals. Sunu Assurance traded with 50.81 million shares valued at N10.16 million. Access Bank followed with 32.3 million shares worth N203.1 million, while Diamond Bank traded 28.6 million shares valued at N70.1 million.
UBA traded 19.02 million shares valued at N153.66 million, while Guaranty Trust Bank transacted 17.77 million shares worth N677.66 million.
Analysts at Afrinvest Limited said that “based on market performance yesterday, we advise cautious trading till the final results of the presidential elections are announced.”
To Advertise or Publish a Story on NaijaLiveTv:
Kindly contact us @ Naijalivetv@gmail.com
Call or Whatsapp: 07035262029, 07016666694, 08129340000
