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Profit Taking Hits Equities

By on April 21, 2011

The Nigerian equities market retreated at the close of business Wednesday as anxious investors rush to take profit following seven days of continuous rally.

The market had between Monday and Tuesday this week added a total of N111 billion following renewed optimism fuelled by hope of continued gains.

But the push to take profit reduced the market value by N19 billion Wednesday despite huge investment on banks stocks.

Analysis of trading results released by the Nigerian Stock Exchange (NSE) showed that its benchmark All-Share Index or ASI depreciated by 0.06 points or 0.23 per cent to close at 25, 324.53 as against 25, 384.10 the previous day.

Similarly, the market capitalization, which mirror the total amount of investment in the market, declined by 0.23 per cent to close at N8.096 trillion from N8. 110 trillion the previous day.

In the same vein, the NSE-30 Index depreciated by 0.004 points or 0.36 per cent to close at 1,103.45 from 1,107.03 on Tuesday.

Also, three of the four sectoral indices depreciated. While the NSE Banking Index fell by 2 points or 0.5 per cent to close at 397.00, the NSE Food/Beverage Index depreciated by 1.3 points or 0.15 per cent to close at 811.91 and the NSE Oil/Gas Index depreciated by 1.1 points or 0.32 per cent to close at 341.16 points.

However, the NSE Insurance Index appreciated by 2.7 points or 1.5 per cent to close at 174.68.

Meanwhile, the banking subsector remained the most active in terms of the volume of shares traded. It led the equities sector with a total of 250.03 million ordinary shares valued at N2.41 billion exchanged in 2,992 deals.

The volume of shares traded in the banking sector was largely driven by the activity in the shares of Access Bank Plc, Zenith Bank Plc, First Bank of Nigeria Plc, and Skye Bank Plc.

Trading on the shares of the four banks accounted for 162.1 million ordinary shares or 64.8 per cent of the subsectors’ turnover.

The insurance sector boosted by the activity in the shares African Alliance Insurance Plc, Equity Assurance Plc and AIICO Insurance Plc trailed on the activity chart with a turnover of 70.7 million ordinary shares valued at N45.6 million executed in 570 deals.

The price movement chart of the NSE displayed a total of 26 stocks that recorded gains as against 35 on the losers table.

Chemical and Allied Products Plc led on the gainers table with a gain of N1.99 to close at N41.89 per share while Guinness Nigeria Plc followed with N1.97 gain to close at N202.03 per share.

On the other hand, Cement Company of Northern Nigeria Plc led on the losers’ table with a loss of 52 kobo to close at N10.12 per share while International Breweries Plc trailed with 32 kobo loss to close at N6.25 per share.

Source : Thisday