Profit-taking Persists as Stock Market Decline by N17bn

finance & economy - September 22, 2021

The Nigerian equities market yesterday extends the bearish sentiment to two consecutive trading sessions, as investors’ wealth dwindled by N17 billion.

The negative performance was driven by sell-off sentiment in the banking sector.

In summary, the NGX All-Share Index (ASI) shed 32.57 points, representing a decrease of 0.08 per cent to close at 38,873.85 points. Similarly, the overall market capitalisation value lost N17 billion to close at N20.254 trillion.

On sectors, the Industrial Goods (+0.1 per cent), Insurance (+0.1 per cent) and Oil & Gas (+0.1 per cent) indices recorded gains, the Banking (-1.0 per cent) index declined while the Consumer Goods index closed flat.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; Zenith Bank, Guaranty Trust Holding Company (GTCO), Neimeth International Pharmaceuticals, Access Bank and Flour Mills of Nigeria.

However, the market breadth closed positive, recording 16 gainers as against 13 losers. MRS Oil Nigeria recorded the highest price gain of 9.75 per cent to close at N15.20, per share. Veritas Kapital Assurance followed with a gain 9.52 per cent to close at 23 kobo, while Regency Alliance Insurance went up by 6.82 per cent to close at 47 kobo, per share.

Unity Bank rose by 3.77 per cent to close at 55 kobo, while Courteville Business Solutions gained 3.23 per cent to close at 32 kobo, per share. On the other hand, Neimeth International Pharmaceuticals led the losers’ chart by 7.89 per cent to close at N1.75, per share. Chams followed with a decline of 4.35 per cent to close at 22 kobo, while Japaul Gold and Ventures lost 4.08 per cent to close at 47 kobo, per share.

Sovereign Trust Insurance lost four per cent to close at 24 kobo, while Wema Bank shed 3.80 per cent to close at 76 kobo, per share.

Meanwhile, the total volume of trades rose by 1.4 per cent to 184.443 million units, valued at N2.343 billion, and exchanged in 3,809 deals. Transactions in the shares of United Bank for Africa topped the activity chart with 38.994 million shares valued at N297.641 million. GTCO followed with 19.037 million shares worth N517.862 million, while Zenith Bank traded 14.199 million shares valued at N326.522 million.

United Capital traded 12.888 million shares valued at N114.177 million, while Access Bank transacted 10.083 million shares worth N90.171 million.

Analysts at Afrinvest Limited said that “Following an improvement in sentiment, we expect a positive performance in the next trading session as investors take position in attractive stocks.”

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