The Bearish trend in the Nigerian equities market extended into the 2nd consecutive day as profit taking across board by investors drove the All Share Index 0.6% southwards, to settle at 25,563.78 points. The major counters responsible for the decline were NIGERIAN BREWERIES (-5.5%), WAPCO (-2.1%) and DANGCEM (-0.6%). Investors lost a total of N52.4bn as market capitalisation fell to N8.8tn. Activity level also weakened today as volume and value traded slid 46.0% and 34.5% to 178.6m units and N1.5bn respectively.
Consumer Goods Index Leads Sector Losers
In a turnaround from being the top gaining sector yesterday, the Consumer Goods index declined the most today, down 2.0% following profit taking in NIGERIAN BREWERIES (-5.5%) and CADBURY (-5.0%). The Industrial Goods index also declined, as the rout on WAPCO (-2.1%) and DANGCEM (-0.6%) persisted, driving the sub index 1.1% lower. On the other hand, the Oil & Gas index appreciated the most, up 1.6% majorly due to price appreciation in FORTE (+5.0%). Similarly, the Banking and Insurance indices grew 0.3% and 0.2% respectively.
Investor sentiments worsened today, though still positive, as market breadth (advancers’/decliners’ ratio) stood at 1.0x (from 1.4x yesterday) as 25 stocks appreciated while 24 depreciated. The gainers’ chart was topped by FIDELITY (+6.7%), MAYBAKER (+5.0%) and FORTE (+5.0%) while TRANSEXPRESS (-8.9%), CCNN (-6.2%) and NIGERIAN BREWERIES (-5.5%) led the losers’ list. After the Bullish start to the week, profit taking by investors has gained momentum and dragged market performance; however, we expect to see some bargain hunting in the session ahead as the week winds out.