Profit-taking pressure persist as NSE ASI down 1.07%


The Nigerian Stock. Market (NSE) equities market segment continued the negative note for the third consecutive trading session of the week.

The NSE All-Share index depreciated by  1.07per cent at the close of trade on the back of profit-taking in Forte Oil that dropped by five per cent, Nigerian Breweries declined by 1.5 per cent, while Okomu OIl and 7-Up lost  4.9 per cent and 0.5 per cent respectively.

The capital market benchmark closed at 28,219.44 basis points, tempering YtD loss to 18.58 per cent.

In the same vein, market capitalization declined N45.32 billion to close at N9.70 trillion, while market activity as measured by value and volume closed N1.45 billion and 143.70 million respectively.

At the close of trading most of the sector index went northwards to close positive save for the Oil and Gas and Consumer Goods Index.

The Oil and Gas Index closed negative at the close of trading to lead the losers list as pump and dump persist in Forte Oil dropped by five per cent  and Oando Plc also declined by 1.8 per cent to depreciate the index further by 2.51per cent.

Followed by the consumer goods index,  which declined for the fourth consecutive trading day on loses in Nigerian Breweries that dropped by 1.5per cent, 7-UP and Dangote Sugar depreciated by. 0.5 per cent  and 3.1per cent to close the index negative by 0.74per cent.

On the flip side, the Banking Index closed positive to reverse previous loss as investors sentiment resume in Zenith Bank Plc rose by 1.5per cent, United Bank of Nigeria gained 2.7 per cent , Diamond Bank and SkyeBank rose by 3.6 per cent and 0.6 per cent respectively. Major gain in Banks’ share put the index at 0.36 per cent.

. Followed by the Insurance Index, which closed positive as investors optimism persist in NEM rose by three per cent and AIICO also gained 1.1 per cent to close the index positive by 0.18per cent.

In the same vein, the Industrial index closed positive as price appreciation in Ashakacem rose by 1.8per cent moderated the index by  0.02per cent.

After today’s trading activities, equities market  top gainers were Berger paint that gained 4.9 per cent, Caverton  rose by 4.6per cent,while Diamond Bank and  Cutix gained 3.6 per cent and 3.5 per cent each.

Top losers for today were Dangote Flour that dropped by 5.5 per cent, Transcorp losses 5.3 per cent, Forte. Oil depreciated by five per cent and Redstarex dip by  4.9per cent.

Market analysts  said the exit of foreign investors and the preparation for the forthcoming Xmas celebration have created persistence profit-taking.

They however advised investors to trade with caution and utilize the opportunity present by stocks that are currently trading below their intrinsic value.

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