Bears Strike Back After Brief Rebound, Drive Equities Performance Lower By N445bn

The Nigerian equities market yesterday reverted to its bearish trajectory, with the market capitalization contracted by N445 billion, driven by year-end profit taking and portfolio rebalancing.

The All Share Index (ASI) lost by 698.56 points, representing a loss of 0.49 per cent to close at 143,064.57 points. Also, market capitalization declined by N445 billion to close at N 90.996 trillion.

The overall downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; BUA Cement, Cadbury Nigeria, Nigerian Breweries, Meyer and Lafarge Africa.

On market outlook, Imperial Asset Managers Limited said, “we expect the cautious and defensive tone to persist in the near term, as the market continues to rebalance from last week’s heavy selloffs. While profit-taking in selected counters particularly financials, may limit broad upside. Overall, the market may trade in a range-bound pattern, with intermittent recoveries as investors reassess valuations and await clearer directional signals.”

The market breadth remained neutral, as 29 gainers marginally exceeded 27 decliners. AIICO Insurance recorded the highest price gain of 10 per cent to close at N3.52, per share. NCR Nigeria followed with a gain of 9.96 per cent to close at N49.70, while Ikeja Hotel rose by 9.41 per cent to close at N25.00, per share.

Prestige Assurance appreciated by 7.38 per cent to close at N1.60, while Sterling Financial Holdings Company up by 6.85 per cent to close at N7.80, per share.

On the other hand, Learn Africa led the losers’ chart by 10 per cent to close at N5.22, per share. Cadbury Nigeria followed with a decline of 9.92 per cent to close at N53.10, while Meyer declined by 9.91 per cent to close at N14.55, per share.

UPDC depreciated by 8.83 per cent to close at N5.47, while International Breweries declined by 8.33 per cent to close at N11.00, per share.

Meanwhile, the total volume traded rose by 32.76 per cent to 738.353 billion units, valued at N 35.535 billion, and exchanged in 19,919 deals. Transactions in the shares of Guaranty Trust Holding Company topped the activity chart with 134.122 million shares valued at N11.572 billion. Access Holdings followed with 110.522 million shares worth N2.293 billion, while First Holdco traded 62.777 million shares valued at N1.946 billion.

United Bank for Africa (UBA) traded 39.268 million shares valued at N1.423 billion, while Nigerian Breweries sold 37.993 million shares worth N2.508 billion.