Local equities decline by N2.393trn

The local equities market on Wednesday closed on a negative note, shedding N2.393 trillion as profit taking in capitalised stocks weigh down on the performance of the market.

Market capitalization of listed equities declined by 1.63 per cent to N144.824 trillion from N147.217 trillion reported the previous day.

The NGX All Share Index also fell by 3729.11 basis points to 225690.07 points from 229419.18 points it closed on Tuesday.

The negative performance of the market was supported by depreciation in the shares of Aradel Plc, GTCO Plc, Nascon, Dangote Cement, Transcorp, Zenith Bank and 26 others.

The market breath was negative with 19 advancers and 32 decliners bringing year to date return to 45.03 per cent.

Chief Executive Officer Highcap Securities Ltd, David Adonri said the recent correction witnessed on the Nigerian Exchange should not be interpreted as a sign of structural weakness in the capital market but rather as a normal phase of institutional portfolio repositioning following the strong rally triggered by economic reforms.

“The current market correction is a result of institutional investors repositioning their portfolios and not an indication of a breakdown in market fundamentals,” he said, adding that investor sentiment remains largely supported by improving macroeconomic conditions.

An analysis of the investment showed that AustinLaz led gainers table with 10 per cent gain the close at N3.30 per unit, Guinea Insurance followed with a gain of 9.89 per cent to close at N1.00 per unit, Abbey Building added 9.66 per cent to close at N7.95 per unit, Daar Communications recorded gain of 9.60 per cent to close at N1.37 per share, Regal Insurance increased by 9.52 per cent to close at N0.92 per unit.

On the contrary, three companies, Neimeth International pharmaceutical company, Mcnichols Plc and Aradel Plc topped losers’ chart by 10 per cent each closing at N8.10, N7.65 and 1275.80 per unit, respectively.

Nascon trailed with loss of 9.98 per cent to close at N197.60 per unit, International Breweries declined by 9.52 per cent to close at N9.50 per unit.

Volume of transactions declined 428.543 million, representing 46.75 per cent as investors traded 488.118 million shares against 916.661 million reported the previous day. Value of trades depreciated by 65.09 per cent to settle at N13.960 billion in 46929 deals.

Sterling Bank recorded the highest of transactions with 110.562 million UPDC followed with account of 40.067 million shares cost N130.284 million, Honey Well Flour traded 33.484 million shares cost N485.866 million, United Capital exchanged 28.161 million shares valued at N466.121 million while Universal Insurance sold a total of 26.619 million shares cost N22.226 million.