Nigerian Stock Market Slips as Investors Book Profits

Yesterday, the Nigerian Exchange Limited (NGX) closed lower for the second consecutive day as persistent profit-taking cut N437 billion from the market, indicating a cautious mood among investors. 

While overall market capitalisation fell to N88.935 trillion, the AllShare Index (ASI) declined by 691.52 points or 0.49% to finish at 140,557.24 points at the end of trading.

The decline was primarily driven by losses in heavyweight companies such as Nestle Nigeria, Lafarge Africa, Dangote Sugar Refinery, Guaranty Trust Holding Company (GTCO), and Cadbury Nigeria.

The News Chronicle is aware that as investors await half-year profit reports and potential interim dividend declarations, they are exercising caution.  Due to this expectation, the market has been oscillating between cautious players who are locking in profits from previous rallies and bargain hunters seeking cheap opportunities.

Market analysts remain cautious about the short-term recovery. Imperial Asset Managers observed that bargain hunting could offer some balance, while Afrinvest predicted that a bearish attitude will probably endure as profit-taking continues to dominate. Market width remained poor with 19 gainers against 39 decliners; 71 equities were unchanged.

Several companies experienced significant increases despite the overall decline. Led by a 10 percent gain to close at N6.05, SCOA Nigeria was followed by R.T. Briscoe with a 9.8 percent gain. N3.36.

NEM Insurance gained roughly 8 percent to end at N31.20, while Nigerian Exchange Group increased 7.94 percent to close at N57.80. McNichols Also rose by 7.04 percent to finish at N3.80.

Omatek Ventures dropped 8.97 percent to N1.32, Ellah shed 9.62 percent to finish at N3.29, on the opposite side Lakes lost 8.49 percent to finish at N13.68. Royal Exchange dropped 6.98 percent to N2.00; SUNU Assurance fell 6.42 percent to N5.54.

Interestingly, the overall market activity was more robust. Across 26,163 transactions, trading volume surged 29.6% to 885.023 million units valued N28.301 billion. Champion Breweries had 201.053 million shares worth N3.474 billion, then Access Holdings with 102.182 million shares worth N2.762 billion followed by GTCO. Nine hundred sixty-four million five hundred shares worth N8.887 billion also prominently featured.

First Holdco had 46.258 million shares worth N1.505 billion; Sterling Financial Holdings registered 90.824 million shares worth N726.592 million.