Selling pressures drag down NSE indices


By Ademola Alawiye



The All-share Index and market capitalisation of the Nigerian Stock Exchange fell on Wednesday as a result of selling pressures across major sectors in the equities sector.

The decline, according to analysts, who spoke with our correspondent, was caused by profit taking by investors in major sub-sectors.

They noted that the selling pressure was significant across all sectors, but was dominant in the food/beverages and banking sub-sectors.

They added that the effect of the massive sell offs by banks and stock broking firms to reduce their exposure to 10 per cent in the capital market also contributed to the decline.

Meanwhile, the NSE‘s All Share Index fell by 0.09 per cent or 21.19 points, from 24,268.24 on Tuesday to 24,247.05 points.

Similarly, the market capitalisation of the listed equities dropped by 0.09 per cent or N5bn to close at N5.94tn, as against N5.95tn recorded the previous day.

The NSE-30 Index closed at 1,009.54 points, representing a decline of 0.10 per cent or 1.06 points, from 1,010.60 points.

The NSE Banking Index fell by 0.32 per cent or 1.13 points, from 355.41 to 354.28 points, while the NSE Insurance Index also declined by 0.80 per cent or 1.38 points to close at 174.38 points.

Turnover was driven by activities in the banking sub-sector, as it accounted for 51 per cent of total volume. Volume in the sub-sector was driven by trading in the shares of Guaranty Trust Bank Plc and Zenith Bank Plc.

Nigerian Breweries Plc recorded the highest gain, with an appreciation of two per cent or N1.40, to close at N71.00 per share. African Petroleum Plc followed with a gain of five per cent or N1.35 to close at N28.37 per share, while Dangote Flour Mills Plc finished with a gain of 2.3 per cent or 40 kobo to close at N17.50 per share.

Guinness Nigeria Plc recorded the highest price loss, down by 1.2 per cent or N2.01 to close at N162.99 per share. Flour Mills Nigeria Plc also lost 2.3 per cent or N1.65 to close at N70.25 per share. PZ Cussons Nigeria Plc followed with a four per cent N1.33 loss to close at N32.00 per share.

Source: The Punch



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