The Nigerian stock market shed 1.26 per cent on Tuesday as profit taking by some investors halted its six-day gaining streak. The market has been bullish for the past few days as investors reacted to corporate earnings for the 2015 financial year. The high expectations drove the market to record gains in six straight days.
However, profit taking set in, leading the market to close lower. While the Nigerian Stock Exchange (NSE) All-Share Index went down by 1.26 per cent to close at 24,514.91, market capitalisation shed N107.5 billion to close at N8.43 trillion.
A total of 19 stocks decline in value, compared with 16 that appreciated. The price losers where majorly blue chip stocks such as Dangote Cement Plc, Nigerian Breweries Plc, Zenith Bank Plc, Guaranty Trust Bank Plc and Seplat Petroleum Development Company Plc.
However, Champion Breweries Plc led the price losers’ chart with 5.0 per cent, trailed by Caverton Offshore with 4.8 per cent. Learn Africa Plc and AXAMansard Insurance Plc went down by 4.6 per cent apiece. Continental Reinsurance Plc and Dangote Cement dipped by 4.1 per cent and 3.9 per cent respectively.
Fidson Healthcare Plc, Unity Bank Plc and Seven-Up Bottling Company Plc shed 3.2 per cent, 3.1 per cent and 2.5 per cent in that order.
On the positive side, May & Baker Nigeria Plc led the price gainers with 5.0 per cent, trailed by GlaxoSmithkline Consumer Plc with 4.9 per cent. Eterna Plc added 4.9 per cent, just as Portland Paints & Products Plc appreciated by 4.2 per cent.FBN Holdings Plc garnered 3.7 per cent.
The gain by FBN Holdings, lifted the NSE Banking Index by 0.22 per cent. Similarly, the NSE Oil & Gas Index closed 0.04 per cent higher as a result of 0.53 per cent appreciated posted by Oando Plc.
On the contrary, the Profit-taking Halts Six-day Gaining Streak at Stock Market Industrial Goods Index and NSE Insurance Index declined by 2.1 per cent and 1.5 per cent respectively. The NSE Consumer Goods Index also fell as a result of price declines in Nigerian Breweries Plc and Nestle Nigeria Plc.
Analysts at Cordros Capital said they expect losses to continue in the coming session, as investors’ appetite appears weak.
“However, expectations of oil price stability following Saudi Arabia, Russia, Qatar and Venezuela’s agreement on oil output freeze might provide a catalyst for bullish sentiments,” they said.