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Market capitalisation sheds N8bn on profit-taking

By on November 27, 2013

The market capitalisation of the Nigerian Stock Exchange (NSE) shed N8 billion Monday as investors moved in to take profit after stocks closed at record highs last week.

Stocks  rode on the wave of positive investor sentiments in reaction to third quarter results (Q3) and lifted the NSE All-Share Index (ASI) by 3.6 per cent to close at 39,246.05 last week. Some stocks rose between 61 per cent and 32 per cent last week.

However, when  trading resumed  for the week yesterday, there was a moderation in pricing as profit-taking ruled the market. As a result, the ASI went down by 0.06 per cent while market capitalisation shed N8 billion to close at N12.545 trillion.

There  were 34 price losers compared with 30 price gainers.  Transcorp Plc, which garnered 61.7 per cent last week  led the price losers yesterday,  shedding  9.54 per cent or N0.56 to close at N5.31 per share.  Investors have been swooping  on the shares of Transcorp  and taking position ahead of positive impact the recent acquisition of Ughelli Power Plant will have on the firm’s fortunes in the years ahead.

But analysts at Meristem   Securities Limited, who had attributed the rally in share price of Transcorp to the power plant acquisition, had also envisaged  a price moderation in the shares this week.

“We attribute the rally to investors’ pricing of the recent acquisition of the Ughelli Power Plant and the company’s strategic plans to build more hotels as well as its oil and gas assets. We do not expect this positive development to cause so much gyration given their long-term gestation period. Therefore, we expect moderation in the coming weeks,” the analysts said.

Unity Bank Plc,  which also had bullish run last week, shed 5.8 per cent yesterday to close at N0.65. Lafarge Cement WAPCO Nigeria Plc closed as the third highest price loser, going down by 5.0 per cent.

On the other hand, Prestige Assurance Plc led the price gainers with 10 per cent or N0.06 to close at N0.66 per share.

 

 

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