Stock market loses N65billion on profiteering

The Nigerian stock market lost about N65billion from its capitalisation yesterday as many investors resorted to profit taking following the recent rally recorded in the market for two consecutive days.
The volume of transactions at the Nigerian bourse yesterday was higher than the preceding trading day’s level as stock dealers exchanged 517.050million shares in 6,184 deals compared with 434.155million shares exchanged in 7,278 deals the preceding day. Value of equities traded stood at N5.273billion against the preceding day’s N4.350billion.

The stock market’s performance indicators closed negative at the close of trading at the Nigerian Stock Exchange (NSE). The NSE All Share Index (ASI) dropped by 0.6 percent or 201.58 points to 33,506.60 from 33,708.18 the preceding trading day; while the market cap dropped by N65billion to N10.721trillion from N10.786trillion the preceding trading day.

The disciplinary committee of the Nigerian Stock Exchange council had a closed door meeting yesterday, but the outcome of their meeting was unclear as at the time of filing in this report. “They are still meeting. Because I am not part of the meeting, I can say exactly what they are discussing –whether it focuses on the exchange, operators, or any other market related issue,” a source at the NSE said.

Investors in Total Nigeria plc, Mobil Oil Nigeria plc, PZ plc, Northern Nigeria Flour Mills plc, and Guinness Nigeria plc had cause to smile as the share prices of these stocks rallied most at the Exchange. Total Nigeria plc rallied most by N5.59 from N140 to N145.59; Mobil Oil Nigeria plc followed after rising from N125.97 to N130, adding N4.03; PZ plc gained N3, from N37 to N40; Northern Nigeria Flour Mills plc rose from N20.25 to N21.26, adding N1.01; while Guinness Nigeria plc firmed by N1, from N275 to N276.

Source: BusinessDay

On the declining side, Nestle led losers after its share price dropped from N981 to N930, losing N51; followed by NewGold Exchange Traded Fund (ETF) which declined from N2, 437 to N2, 400, losing N37; Okomu Oil lost N2.90, from N58 to N55.10; Cadbury dipped by N1.80, from N40.80 to N39; while Presco lost N1.70, after declining from N25.90 to N24.20.