Trading in the Nigerian equities market closed in the red on Monday as following 8.5 per cent sell-offs in the stocks of Ecobank (ETI), 1.8 per cent in Nigerian Breweries (NB) and 1.0 per cent decline in Zenith Bank.
Thus, the benchmark index which tracks share price movement at the Nigeria Stock Exchange (NSE) declined by 0.2 per cent as it shed 63.63 points to 35,064.36 basis points; while market capitalization shed N38 billion to close the week’s opening session at N18.327 trillion.
Consequently, Month-to-Date (MtD) and Year-to-Date (YtD) gains moderated to 0.1 per cent and 30.6 per cent, respectively.
Earlier, investment analysts had projected a mixed week, as traders and investors interpret the recent earnings reports and economic data, coupled with stock portfolios repositioning ahead of the December seasonal trends and expectorations.
This is given that the market has seemingly ignored the news of Nigeria’s entry into a second economic recession in five years.
Thus, Ambrose Omordion, chief research officer at Investdata Consulting Limited, recommended counseled investors to stay in stocks as the vaccine led rally in global markets and inflow of funds into equity space in emerging markets due to prevailing low interest which has been supporting equity assets.
“Meanwhile, given the persisting bull-run, profit taking is evitable, being a regular behaviour of stock markets. Any price correction at this phase of market recovery will support the upside potentials.
“This is especially as many fundamentally sound stocks remain underpriced, while the dividend yields of major blue-chips continue to look attractive, despite the recent weeks’ rally,” he explained.
This indicates that profit-taking pressure in the market is minimal and normal while expectations are still very high for further uptick in stock assets so long supporting factors remain extant.
At the Monday session, trading statistics reveal that across sectors, the banking (-0.8 per cent), consumer goods (-0.6 per cent) and industrial goods (-0.1 per cent) indices declined, while the insurance (+0.5 per cent) and Oil & Gas (+0.2 per cent) indices recorded gains.
Despite the decline, the total volumes traded increased by 10.7 per cent to 324.32 million units, valued at N3.19 billion, and exchanged in 4,108 deals.
Market sentiment, as measured by market breadth, was positive as 17 tickers gained, relative to 15 losers while 13 others closed on flat prices.
NSE Data shows that the gainers were led by NNFM, gaining No.68 to close at N6.88 per share. PZ followed with N0.20 to close at N5 per share.
Other gainers include Livestock, UCAP and NAHCO gained N0.12, N0.10 and N0.06 to close at N1.33, N4.60 and N2.40 per share respectively.
Transcohot and Dangote Sugar shed N0.40 each to close at N3.60 and N18.60 respectively while Zenith Bank joined the list with N0.25 loss to close the day at N23.70 per share.