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Profit-taking dips market cap by N118bn week-on-week

Profit-taking dips market cap by N118bn week-on-week

Negative sentiments and profit taking in some blue chip stocks took precedence in the domestic equities market at the end of last week, with investors recording N118 billion loss week-on-week (w/w) at the end of trading last Friday. In spite of the further easing of the lockdown of the economy by government and three consecutive days of gains during the week, the market’s All-Share Index (ASI) closed red, falling 1.0percent w/w to settle at 25,016.30 points. Thus, the month to date return settled at -1.0percent, as the year to date loss increased to -6.8percent.
Profit-taking in stocks was largely in BUA Cement (-4.8percent), Stannic IBTC (-7.3 percent) and Union Bank of Nigeria (-8.2percent) weighed down on the overall performance of the bourse. Activity level was mixed as average volume declined 29.8 percent to 293.8m units while value traded rose 4.7percent to N4.7bn. The top traded stocks by volume were FBNH (175.9m units), Guaranty Trust Bank (154.9m units) and Zenith Bank (125.8m units) while Dangote Cement  (N6.3bn), Nigerian Breweries (N5.1bn) and GTB (N3.8bn) led by value.
Performance across sectors was bearish as 4 of 6 indices under review trended southward w/w. The industrial goods index led laggards, down 3.1percent on the back of sell pressures in Cutix (-9.6 percent), BUA Cement (-4.8 percent) and WAPCO (-0.4percent). Trailing, the Banking index shed 1.8 percent on account of losses in Union Bank (-8.2percent), Stanbic (-7.3 percent) and Sterling Bank (-7.2 percent).
Similarly, the oil & gas and insurance indices lost 1.3 percent and 0.7percent respectively as investors exited positions in Total (-6.5 percent), Mansard (-8.9 percent) and Wapic (-6.3percent). Conversely, the consumer goods index led gainers, up 0.3 percent as Dangote Sugar (+15.9percent) and Nascon (+3.6 percent) buoyed performance while gains in Chams (+12.5percent) and Courtville (+5.0 percent) marginally drove the AFR-ICT index 3bps higher. Investor sentiment as measured by market breadth weakened to 0.6x from 1.6x as 25 stocks advanced against 39 that declined. The top performing stocks for the week were Neimeth (+56.6 percent), Japaul Oil (+50.0 percent) and UAC-Prop (+20.0 percent) while Afro Media (-23.1 percent), Julius Berger (-22.7 percent) and UACN (-13.9 percent) were the laggards. Reflecting on the market’s outlook, Analysts at Cordros Capital stated: “In our opinion, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. “Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”, they added.

source: https://www.dailytrust.com.ng/profit-taking-dips-market-cap-by-n118bn-week-on-week.html