Equities market loses N2.28trn on profit-taking pressure

The domestic bourse posted its third consecutive loss on Wednesday, as widespread profit-taking activity completely wiped N2.28trn off the equities market capitalisation.

The persistent bearish run pulled key performance indicators lower, driven heavily by price depreciation in large and medium-capitalised stocks.

The All-Share Index shed 3,736.05 points, representing a 1.51 per cent decline to close at 243,132.61 points. This downturn dragged the year-to-date return down to 56.24 per cent. Similarly, the market capitalisation of listed equities depreciated to close at N155.94trn.

Market analysts attributed the sharp contraction to profit-taking in premium equities, including MTN Nigeria Communications, Lafarge Africa, Nigerian Exchange Group, FBN Holdings, Nigerian Breweries, and Zichis Agro Allied Industry.

Reviewing the market outlook, analysts at Cowry Assets Management Limited noted that investor sentiment remained weak under the current sell-offs. The firm said, “The market is expected to sustain its bearish tone as continued profit-taking activity weighs on investor sentiment.”

Market breadth closed broadly negative, with 43 decliners outpacing 15 advancers at the end of the day’s transactions. Lafarge Africa led the losers’ chart with a 9.97 per cent drop to close at N307.90 per share, closely followed by Zichis Agro Allied Industry, which fell 9.82 per cent to close at N29.20 per share. Learn Africa and John Holt also depreciated 9.80 per cent each to close at N11.50 and N13.80 respectively, while Consolidated Hallmark Insurance dropped 8.84 per cent to close at N6.19 per share.

Conversely, Abbey Mortgage Bank emerged as the highest price gainer, rising 9.93 per cent to close at N7.75 per share. International Energy Insurance followed with a 9.89 per cent appreciation to close at N6.00, while Tripple Gee and Company by 9.80 per cent to close at N4.37 per share. Universal Insurance and Royal Exchange also gained 8.91 per cent and 7.14 per cent to close at N1.10 and N1.50 per share respectively.

Despite the equity price depreciation, liquidity in the market strengthened as total volume traded advanced 57.1 per cent to 922.97m units, valued at N42.27bn and exchanged in 69,332 deals.

Transactions in the shares of Sterling Financial Holdings led the activity chart with 264.59m shares worth N2.12bn. Access Holdings followed with an account of 76.69m shares valued at N1.83bn, while Linkage Assurance traded 55.13m shares valued at N99.16m. VFD Group traded 35.46m shares worth N378.83m, while Ellah Lakes recorded 33.12m shares worth N34.29m.

Reacting, an analyst at Apt Securities and Funds Limited said, “Overall, the session was characterised by strong trading turnover amid sustained bearish pressure, suggesting that increased market activity was driven largely by sell-side transactions.”