Bearish trend persisted on the Nigerian Stock Exchange (NSE) with curcial market indices dropping further by 1.22 per cent, thereby forcing the market capitalisation to dip below the N11 trillion mark.
The News Agency of Nigeria (NAN) reports that the decline was as a result of sustained profit taking embarked by investors due to month-end activities.
Specifically, the All Share Index (ASI) shed 361.32 points, representing a dip of 1.22 per cent to close at 29,159.74 against 29,521.06 posted on Monday.
Similarly, the market capitalisation shed N136 billion to close at N10.958 trillion in contrast with N11.094 trillion achieved on Monday.
Market performance was influenced by price depreciation in medium and large capitalised stocks, among which are, Nestle Nigeria, Dangote Cement, Stanbic IBTC Holdings, Cement Company of Northern Nigeria (CCNN) and NASCON.
Analysts at Cordros Capital Limited noted that “in the absence of a positive catalyst, we guide investors to trade cautiously in the short term.
”However, stable macro-economic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term,” they said.
Analysts at APT Securities and Funds Limited said that “the NSE-ASI extends negative outlook amidst good fundamentals. However, positive first quarter result had an ample effect on company’s stock prices.
“Therefore, there is still room for more up days. Investors are thereby encouraged to take a medium to long term position in fundamentally justifiable stocks.”
However, market breadth was positive with 26 gainers against 19 losers.
Japaul Oil & Maritime Services, UACN Property Development Company and Caverton Offshore Support Group recorded the highest price gain of 10 per cent, each to close at 33k, N1.65 and N2.97 per share, respectively.
Forte Oil followed with a gain of 9.97 per cent, to close at N35.30, while Dangote Flour Mills rose by 9.94 per cent to close at N18.80, per share.
On the other hand, Cutix led the losers’ chart by 9.76 per cent, to close at N1.85, per share.
Goldlink Insurance followed with a decline of 9.09 per cent to close at 40k, while CCNN declined by 8.79 per cent to close at N14, per share.
Unity Bank declined by 5.88 per cent to close at 80k, while NASCON Allied Industries was down by 4.74 per cent to close at N18.10, per share.
Also, the total volume traded went up by 91.51 per cent with an exchange of 543.92 million shares, valued at N8.2 billion exchanged in 4,682 deals.
This was against the 290.19 million shares worth N2.16 billion transacted in 4,302 deals on Monday.
CCNN was the toast of investors, accounting for 132.33 million shares valued at N1.86 billion.
FBN Holdings followed with 68.78 million shares worth N497.25 million, while Unilever Nigeria sold 50.47 million shares valued at N1.56 billion.
Guaranty Trust Bank traded 41.44 million shares valued at N1.38 billion, while Dangote Flour transacted 37.88 million shares worth N712.1 million.
NAN reports that the market would reopen on May 2 following public holiday declared by the Federal Government on May 1 to mark Worker’s Day.
