Nigeria’s stock market opened the week on a bearish note after investors cashed in on recent gains, wiping N1.32 trillion off the market’s value as major banking, industrial and consumer goods stocks recorded sharp declines.
While market capitalization decreased from N156.44 trillion to N155.13 trillion, the Nigerian Exchange All Share Index dropped 0.84 percent to end at 241,749.11 points.
The News Chronicle reports that heavyweight equities, including BUA Cement, PZ Cussons, Cadbury, NASCON, FCMB, and First HoldCo, all saw significant losses, most likely evidence of profit-taking.
Though volumes decreased, trading activity remained robust, with consumers trading more than 523 million shares worth N22.28 billion, demonstrating that market participation remained healthy.
With 46 stocks closing lower against 19 gainers, market breadth also showed the nervous attitude. But Nigeria Infrastructure Debt Fund, International Breweries, NAHCO, and UAC of Nigeria closed the session on a good note.
Analysts think that following months of robust gains, investors are mostly profiting from their actions rather than from deteriorating market fundamentals. They think future trading sessions will be helped along by portfolio rebalancing and bargain hunting.
