The Nigerian equities market on Tuesday snapped a 12-session bullish run, closing on a bearish note as investors engaged in profit-taking across key stocks.
Figures from the Nigerian Exchange (NGX) showed that market capitalisation dipped by N4 billion to settle at N93.756 trillion, down from N93.760 trillion recorded in the previous session. Similarly, the All-Share Index (ASI) shed 6.27 points to close at 147,710.96 compared to 147,717.23 posted on Monday.
The mild downturn was largely attributed to sell pressure on stocks such as Austin Laz, Deap Capital Management, Fidson Healthcare, Caverton Offshore Support Group, and Berger Paints, among others.
Market breadth also reflected the negative sentiment, as 36 equities closed in the red against 23 gainers.
On the losers’ chart, Austin Laz led the pack with a 7.94 per cent decline to close at N2.90 per share. Deap Capital Management and Fidson followed, shedding 6.67 per cent each to finish at N1.68 and N40.60 per share, respectively. Caverton dropped by 6.35 per cent to N6.49, while Berger Paints lost 5.92 per cent to close at N36.55.
Conversely, Regency Alliance Insurance topped the gainers’ chart, appreciating by 8.82 per cent to close at N1.48. Prestige Assurance rose by 6.71 per cent to N1.75, and WAPIC Insurance advanced by 6.45 per cent to settle at N3.30 per share. Legend Internet gained 5.45 per cent to N5.80, while Computer Warehouse Group added 4.74 per cent to close at N18.80 per share.
Overall trading activity declined as investors exchanged 262.5 million shares valued at N8.3 billion in 16,693 deals, compared to 624.61 million shares worth N13.5 billion traded in 31,563 deals in the previous session.
Fidelity Bank led the activity chart with 41.34 million shares valued at N829.1 million. It was followed by Access Corporation with 21.2 million shares worth N553.4 million, while CHAMS recorded 19.8 million shares valued at N84.9 million. Sovereign Trust Insurance and Regency Alliance Insurance rounded off the list with 17.88 million shares worth N63.3 million and 13.09 million shares valued at N19.5 million, respectively.
Reacting to the development, Mr. David Adonri, Vice President of Highcap Securities, attributed the decline to profit-taking after a prolonged rally.
According to him, “The market had been fatigued due to the sustained upward trend, so today’s dip is a normal correction phase. We also observed that tier-one banks declined, while a few insurance stocks gained, which is not a trend that can hold for long.”
The article was originally published on Politics Nigeria.
