By Udeme Ekwere
Tuesday, 18 Jan 2011
Profit-taking activities by investors in the stock market on the first trading day of the week dragged down major performance indicators.
The Nigerian Stock Exchange’s All-Share Index, which closed at 27,267.17 points last Friday, fell by 0.5 per cent or 137 basis points, to close at 27,130.17.
Similarly, the market capitalisation of the listed equities closed at N8.668tn. This represents a decline of 0.5 per cent or N43bn from N8.711tn recorded at the close of trading on Friday.
The NSE-30 Index lost 9.24 points or 0.8 per cent from 1,202.64 on Friday to close at 1,193.40, while the NSE Banking Index and Food/Beverages Index fell by 0.4 per cent and 0.3 per cent to close at 447.19 and 818.37 points respectively.
Experts had predicted that with the sustained increase recorded in stock indices in the last few weeks, there might be some level of profit taking this week.
For instance, analysts at Vetiva Capital Management Limited, said that speculative investors might begin to take advantage of the marginal increases recorded in their share prices, adding that it was not unusual for investors with short-term investing plan to cash in on the appreciation recorded by some of the shares since the beginning of the year.
Meanwhile, activities in the banking sub-sector drove total volume, accounting for 83.1 per cent.
In the sub-sector, 582.054 million shares, worth N4.851bn were exchanged in 5,798 transactions.
Turnover in the sub-sector was driven by trading in the shares of Zenith Bank Plc.
In the insurance sub-sector, investors staked N24.45m on 33.43 million shares in 288 deals.
Goldlink Insurance Plc led 32 price gainers, rising by 4.9 per cent or three kobo to close at 64 kobo per share.
Costain West Africa Plc followed with 4.8 per cent or 37 kobo gain, to close at N7.97 per share, while Okomu Oil Palm Plc rose by 4.8 per cent to close at N15.29.
FTN Cocoa Processors Plc, on the other hand, fell by five per cent or three kobo to close at 57 kobo per share.
Source: Punch
