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Nigerian equity market halts 12-day uptrend due to profit-taking




The Nigerian equity market ended its 12-day gaining streak on Wednesday, driven by profit-taking in in bellwethers such as MTNN, Zenith Bank and GTBank.

The All-Share index declined by 0.95 per cent to close at 28,634.35 points, while investors lost ₦143.7bn as market capitalisation declined to ₦15.0tn and market return for this year so far weakened to 6.7 per cent.

Investors showed more interest in the market as volume and value of equities traded rose by 11.1 per cent and 0.4 per cent to 832.9m units and ₦9.5bn respectively.

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The most traded stocks by volume were FBNH (128.8m units), Zenith Bank (120.6m units) and UBA (84.0m units) while Zenith Bank (₦2.4bn), GTBank (₦2.4bn) and FBNH (₦789.8m) led by value.

BERGER (+9.8 per cent), LINKASSURE (+9.8 per cent) and NASCON (+9.6 per cent) led 18 other top gainers, while UNILEVER (-9.9 per cent), CORNERSTONE (-9.1 per cent) and ETI (-8.9 per cent) led 28 other laggards.

“We expect bargain hunting in the next trading session to be driven by high liquidity and lower yields in the fixed income market amid the anticipation of Q3:2020 corporate earnings release,” analysts at Afrinvest said.

The Oil & Gas index was the lone gainer as sustained bargain hunting in OANDO (+2.6 per cent) and ARDOVA (+0.4 per cent), lifted the index by 0.2 per cent.

However, the Banking and Insurance indices depreciated the most, down 3.3 per cent and 2.0 per cent respectively, following profit-taking in ZENITH (-6.0 per cent), GTbank (-1.5 per cent) and CORNERSTONE (-9.1 per cent).

Likewise, profit-taking in MTNN (-1.5 per cent), WAPCO (-4.3 per cent) and DANGCEM (-0.1 per cent), dragged the AFR-ICT and Industrial Goods indices lower by 0.8 per cent and 0.3 per cent respectively. Lastly, the Consumer Goods index declined marginally by 0.1 per cent, induced by sell pressures in UNILEVER (-9.9 per cent), DANGSUGAR (-2.9 per cent) and GUINNESS (-5.7 per cent)

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