Investors’ Wealth Declines ₦44.3bn as Profit-taking Continues
The Nigerian equities capitalisation again nosedived ₦44.3 billion Tuesday as profit-taking continues despite better-than-expected earnings releases by Tier-1 banks.
Sell-offs persisted in the local bourse as the All-Share Index slipped 33 basis points (bps) to settle at 25,497.32 points following sell-pressures in Banking stocks: GUARANTY (-6.2%), ZENITH (-2.3%) and UBN (-3.9%).
Accordingly, market capitalisation fell to ₦13.3 trillion while year to date loss worsened to -5.0%.
Afrinvest noted that activity level varied as volume traded declined 0.8% to 252 million units while value traded advanced 0.8% to ₦2.0 billion.
The most traded stocks by volume were CUSTODIAN which transacted 40.1m units, FBNH 28.2m units and ZENITH did 26.0m units.
Meanwhile ZENITH with ₦444.8 million trade, GUARANTY ₦206.6 million and CUSTODIAN ₦192.7 million led by value.
Performance was bullish across sectors as 5 of 6 indicators that we track gained, Afrinvest said.
The Banking index closed south by 3.4%, dragged by price declines in GUARANTY (-6.2%), ZENITH (-2.3%) and UBN (-3.9%).
On the other hand, the AFR-ICT and Consumer Goods indices closed higher by 0.4% apiece due to buying interest in MTNN (+0.8%), NIGERIAN BREWERIES (+2.5%) and HONYFLOUR (+4.4%).
In the same vein, the Insurance and Oil & Gas indices advanced 0.3% and 0.2% respectively, buoyed by gains in WAPIC (+3.0%) and OANDO (+1bps).
Then, price appreciation in CAP (+2.7%) lifted the Industrial Goods index by 1bps.
However, investor sentiment as measured by market breadth fell to 0.5x from the 1.1x recorded previously as 10 stocks gained against the 19 that declined.
The top gainers were HONYFLOUR (+4.4%), TRANSCORP (+3.4%) and WAPIC (+3.0%).
Meanwhile ARBICO (-9.6%), ROYALEX (-9.1%) and GUARANTY (-6.2%) lost the most.
“We expect investors to take positions in fundamentally sound stocks in the subsequent trading session”, Afrinvest stated.
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Investors’ Wealth Declines ₦44.3bn as Profit-taking Continues
