Profit Taking Wipes Off ₦49.6 Billion from Stock Market

NSE Drifts South on Account of Profit Taking in Banking Stocks

The Nigerian Stock Exchange halted successive bullish trend on Thursday on account of profit taking in banking stocks.

All-Share Index fell 22bps to close at 25,166.01 points due to sell-offs in UBA (-6.3%),  ZENITH (-2.5%) and GUARANTY (-1.8%).

Consequently, investors lost ₦28.8 billion as market capitalisation settled at ₦13.144 trillion as year to date (YTD) loss worsened to -6.2%.

Activity level weakened as volume and value traded declined 40.1% and 38.6% to 348.2 million units and ₦3.4 billion respectively.

The most active stocks by volume were FBNH (47.4m units) ACCESS (36.9m units), and ZENITH (27.4m units) while GUARANTY (₦576.2m), ZENITH (₦478.1m) and MTNN (₦474.3m) led by value.

Performance across all sectors under Afrinvest’s analysts coverage was mixed as 3 indicators lost against the 3 that gained.

Stock market drops due to sell-offs

The Banking index (-2.8%) led the losers as investors took profit in UBA (-6.3%), ZENITH (-2.5%) and GUARANTY (-1.8%).

Likewise, the Oil & Gas (-0.6%) and Consumer Goods (-0.1%) indices lost due to sell-offs in OANDO (-5.7%) and FLOURMILL (-4.8%).

Conversely, the Insurance (+1.2%) index recorded the most gain on the back of buying interest in CORNERSTONE (+7.7%) and MANSARD (+8.2%).

Banking stocks
NSE drifts south on account of profit taking in banking stocks

Similarly, price appreciation in MTNN (+0.9%) and DANGCEM (+0.9%) saw the AFR-ICT and Industrial Goods indices close higher by 0.5% and 0.2% respectively.

Investor sentiment as measured by market breadth fell to 1.0x from the 2.8x recorded in the previous session as 18 stocks gained while 18 lost.

The top gainers were CUTIX (+9.9%), MAYBAKER (+9.7%) and CHAMPION (+9.6%) while ETI (-9.9%), IKEJAHOTEL (-8.7%) and UBA (-6.2%) led the losers.

“We expect bargain hunting to support market performance in the next trading session”, Afrinvest stated.

NSE Drifts South on Account of Profit Taking in Banking Stocks