Stocks Market Drags On Profit Taking From High Cap Stocks , As ASI Down 1 . 63% W - o- W


Last week, the Nigerian stocks market posted a bearish performance as profit taking on high capitalized stocks dragged the All - Share Index (ASI ) down by 1. 63 per cent week- on- week ( W - o -W ) .
The ASI dropped 577. 72 points or 1. 63 per cent to close at 34 ,848. 45 points, leading to increases in the Month- to-Date and Year - to - Date losses , to 5 . 86 per cent and 8 .88 per cent respectively . In the same vein, market capitalisation decreased by N211 billion to N12 .722 trillion .
The stocks market closed red in four of the five trading sessions , as sell pressure ensued in value stocks . While noting that the lower - than - expected GDP growth figure sent negative signals to the market , news of the apex bank’s fine on Stanbic IBTC Holdings and Diamond Bank for illegally repatriating funds on behalf of Telecommunications Company , MTN Nigeria, also contributed to the market ’ s negative sentiments.
Similarly , all other indices finished lower with the exception of the NSE Consumer Goods and NSE Oil and Gas indices that rose by 0 .34 per cent and 0 . 97 per cent respectively . The Industrial Goods sector led decliners after losing 4 . 73 per cent W - o - W , following profit taking in Dangote Cement and Lafarge Africa . Similarly , the Banking index shed 1 . 49 per cent W - o - W on the back of sell - offs in Guaranty Trust Bank , Zenith Bank and FBN Holdings, while persistent sell pressures in Continental Reinsurance, Standard Alliance Insurance and Sovereign Trust Insurance dragged the Insurance index 0. 09 per cent W - o - W .
Market breadth was negative, by a slim margin , as 37 equities appreciated in price during the week, higher than 15 in the previous week, while 34 equities depreciated in price , lower than 45 equities of the previous week. Portland Paints & Products Nigeria led the gainers table by 20 . 65 per cent to close at N2 . 98 per share . Aiico Insurance followed with a gain of 17 . 14 per cent to close at 82 kobo , while PZ Cussons Nigeria rose by 14 . 94 per cent to close at N15 per share. On the other side , Ikeja Hotel led the decliners table by 18 . 64 per cent to close at N2. 27 per share . First Aluminum Nigeria followed with a loss of 15 per cent to close at 34 kobo and Glaxo SmithKline Consumer Nigeria declined by 14 . 38 per cent to close at N13 .10 per share .
Outlook For This Week
This week, analysts at Cowry Asset Management expected the local bourse to close in red territory as investors , especially FPIs , continue to sell their shares amid slower growth in second quarter , 2018 GDP and higher T - bills stop rates.
They noted that “ we believe the sell- offs would present buy opportunity as shares become more undervalued . More so , we reiterate that investors should hunt for companies with potentially high dividend yields and have recorded increased earnings as at first half of 2018 . ”
Analysts at Afrinvest Limited stated that “following the bearish performance this week, we expect sell pressures to persist over the near - term given the general negative mood in the market , and lack of drivers to sway the market to the positive region . ”
Stocks Market Drags On Profit Taking From High Cap Stocks , As ASI Down 1 . 63% W - o- W Stocks Market Drags On Profit Taking From High Cap Stocks , As ASI Down 1 . 63% W - o- W Reviewed by Youngblogger on 03 September Rating: 5

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