The Nigerian equities market began the new trading week on a negative footing on Monday, extending its bearish run to a fifth consecutive session as investors continued to take profits in medium- and large-capitalised stocks.
The market capitalisation declined by N107 billion, representing a 0.07 per cent drop, to close at N156.517 trillion, compared with N156.623 trillion recorded at the previous trading session.
Similarly, the NGX All-Share Index (ASI) fell by 164.55 points, or 0.07 per cent, to settle at 242,454.65 points.
The latest decline moderated the market’s year-to-date return to 55.81 per cent, while market breadth remained firmly negative, with 36 stocks closing lower against 19 gainers.
Profit-taking weighs on market
Analysts and market reports attributed the renewed pressure largely to profit-taking, as investors locked in gains following the strong appreciation recorded by equities over the year.
The decline was led by RT Briscoe, which fell 9.91 per cent to close at N10.45 per share. Fortis Global Insurance followed with a 9.89 per cent decline to N2.37, while McNicholas shed 9.62 per cent to close at N4.70.
Other major decliners included University Press, down 9.35 per cent to N4.85, and NEM Insurance, which lost 8.83 per cent to close at N30.45 per share.
Despite the overall weakness, pockets of buying interest persisted.
Trans-Nationwide Express emerged as the day’s strongest gainer, appreciating by 9.86 per cent to N3.12 per share. AVA Capital gained 9.72 per cent to N7.90, while Thomas Wyatt Nigeria rose 9.09 per cent to N3.
Legend Internet advanced 8.75 per cent to N4.35, while Dangote Sugar gained 8.60 per cent to close at N70.10 per share.
Trading activity declines
Trading activity also weakened during the session.
A total of 1.33 billion shares exchanged hands in 45,494 deals, representing a 5.89 per cent decline in volume. The transactions were valued at N22.93 billion.
Lasaco Assurance dominated activity by volume, with 730.69 million shares traded, accounting for 54.93 per cent of total market volume.
In terms of value, MTN Nigeria Communications (MTNN) recorded the highest turnover, with transactions worth N7.30 billion, representing 31.83 per cent of the day’s total value traded.
The latest performance suggests that investors are becoming more cautious after the market’s substantial gains this year, with profit-taking exerting pressure on some of the market’s medium- and large-capitalised stocks.
Nevertheless, with the year-to-date return still above 55 per cent, the equities market remains substantially higher than its level at the beginning of the year, despite the five-session pullback.
