The Nigerian equities market recorded its first negative performance yesterday, halting its eight-day bullish streak. Having posted a growth of 10.4 per cent since the beginning of the year, the stock market pared gains yesterday, making the Nigerian Stock Exchange (NSE) All-Share Index to shed 1.2 per cent to close at 29,633.58. The decline resulted from profit taking by investors who are trying to lock in some gains recorded since last week.
The bull run that opened the year lifted many stocks by over 20 per cent within one week. However, some of those stocks fell yesterday as the bears set in with depreciation suffered by MTN Nigeria Plc, Dangote Cement Plc, Zenith Bank Plc, Nigerian Breweries Plc, BUA Cement Plc majorly accounting for the negative close for the day.
However, Tourist Company of Nigeria Plc led the price losers, shedding 9.6 per cent, trailed by NPF Microfinance Bank Plc and Consolidated Hallmark Insurance Plc with 9.5 per cent. Nigerian Breweries Plc and Courtville Business Solutions Plc lost 8.8 per cent and 8.3 per cent in that order.
In all, 23 price losers while 13 appreciated led by Beta Glass Plc with 9.6 per cent. C & I Leasing Plc gained 8.8 per cent to close at N7.35 per share. The company last on Monday closed its rights issue through which it hopes to raise N3.234 billion.
According to the company, the N3.234 billion proceeds expected from the issue would be used to finance business expansion(29.17 per cent); refinancing of loans (58.34 per cent); and investment in working capital (9.73 per cent).
The Chairman of C & I Leasing Plc, Chief Chukwuma Okolo had told the shareholders that as they look ahead, the Board and Management of the company have full confidence that the rights issue will result in stronger earnings and cash flows and ultimately improve investment returns.
“It is my privilege, and the privilege of your board of directors, to serve with a view to building shareholder value over the long term, and I encourage all shareholders to participate fully in this rights issue,” he said.
Meanwhile, activity level ended mixed as volume traded surged 91.5 per cent to 666.8 million shares while value traded declined 23.8 per cent to N6.5 billion. The most active stocks by volume were Union Diagnostic and Clinical Services (340.2 million shares), Zenith Bank Plc(69.7 million shares) and UBA (38.8 million shares) while MTN Nigeria Communications Plc (N1.5 billion), Zenith Bank Plc (N1.5 billion) and Dangote Cement Plc (N848.5 million) led by value.