Renewed profit taking dampens Nigeria’s stock market as NSEASI dips 0.01%
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
The Nigerian bourse Tuesday reversed gains from previous session as losses in market bellwethers – INTBREW (-6.1%) and ZENITH (-1.7%) – pulled benchmark index, The NSEASI 1bp lower to 37,988.54 points.
Similarly, the market capitalization dipped by N1.30 billion, representing a decline of 0.01 percent to close at N13.76 trillion, while year to date losses stood at 0.67 percent.
The downturn was impacted by decline recorded in shares of Zenith Bank Plc, International Breweries and Mobil, which dragged down NSE Banking, NSE Consumer Goods and NSE Oil/Gas indices by 0.29 percent, 0.29 percent and 0.07 percent respectively.
Meanwhile, investor interest in NEM (+9.87%) and WAPCO (+2.49%) stocks, supported the gains in the Insurance (+1.61%) and Industrial Goods (+0.89%) indices respectively.
Market breadth turned negative, with 23 losers and 22 gainers, led by JAPAULOIL (-8.89%) and NEM (+9.87%) respectively.
Total volume and value of trades grew further by 160.20 percent and 37.58 percent, to 539.67 million units and NGN4.71 billion, respectively, traded in 4,202 deals.
Outlook on the equities market is also bearish as analyst at Cordros Capital note that “Despite still-positive macroeconomic fundamentals, and favourable stock entry prices, the absence of likely catalysts to spark off potential gains in the equities market dents our positive outlook for the market in the medium term.”