Investor profit taking persists as market capitalization drops N18tn
The domestic stock market started the week’s trading yesterday with mixed feelings, with a loss in Presco and 16 others dragging the market down N18 billion.
Furthermore, headline inflation in Nigeria maintained its upward trend for the sixth consecutive month, reaching its highest level in 17 years. According to the National Bureau of Statistics (NBS), consumer prices rose 105 basis points to 19.64% year-on-year in July, the highest figure since September 2005.
The All Share Index (ASI) fell 34.64 absolute points, representing a decline of 0.07% to close at 49,629.43 points. Similarly, the market capitalization lost 18 billion naira to close at 26.769 billion naira.
The decline was impacted by the losses recorded in mid and large cap stocks, among which; Presco, Dangote Sugar Refinery, Access Holdings, FBN Holdings (FBNH) and United Capital Plc.
This week, United Capital Plc expected the bear market to persist as the impact of the benchmark interest rate hike continued to weigh on equity markets.
“However, investors should continue to pick stocks with strong underlying fundamentals,” he said.
As measured by market breadth, market sentiment was negative, with 17 stocks losing to 12 gaining. Neimeth Pharmaceutical recorded the highest price gain of 9.29% to close at 1.53 naira per share. Unity Bank followed with a gain of 4.65% to close at 45 kobo, while FCMB Group rose 4.18% to close at 3.49 naira per share.
Zenith Bank rose 2.12% to close at N21.70, while Transnational Corporation of Nigeria (Transcorp) rose 0.93% to close at N1.08 per share.
On the other hand, Presco led the losing chart by 9.97% to close at N142.60, per share. Multiverse Mining & Exploration followed with a decline of 7.79% to close at N2.25, while Ikeja Hotel was down 5.51 to close at N1.20, per share.
Dangote Sugar Refinery lost 4.19% to close at N16.00, while Jaiz Bank lost 3.30% to close at 88 kobo, per share.
Furthermore, the total traded volume decreased by 71.9% to 210.836 million units, valued at 2.188 billion naira, and traded in 4,122 transactions. Trading in eTranzact International shares topped the activity chart with 52.552 million shares valued at N119.835 million.
FBNH followed with 23.083 million shares worth N249.782 million, while United Bank for Africa (UBA) traded 21.897 million shares worth N153.480 million.
Guaranty Trust Holding Company (GTCO) traded 15.517 million shares worth N315.918 million, while Transcorp traded 12.742 million shares worth N13.711 million.