Stock Market Drops by N148bn on Profit-taking in Aradel, Others

Kayode Tokede

The Nigerian stock market yesterday halted a two-day positive trend as investors profit-taking in Aradel Holdings Plc and 22 others pulled the overall capitalization lower by N148 billion.

As a result, the Nigerian Exchange Limited All-Share Index (NGX ASI) declined by 249.40 basis points or 0.25 per cent to close at 98,291.53 basis points from 98,540.93 basis points the market opened for trading.

As a result, the NGX ASI Month-to-Date and Year-to-Date returns settled at -0.3per cent and +31.5per cent, respectively.

Consequently, the market capitalisation declined by N148 billion to close at N59.559 trillion from N59.707 trillion it opened for trading.

Sectoral performance was mixed, as the NGX Consumer Goods Index gained 0.5per cent  and NGX Insurance index appreciated by 0.4per cent, while the NGX Industrial Goods, NGX Banking and NGX Oil & Gas indices closed flat.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Aradel Holdings that dropped by 5.85 per cent, Okomu Oil tumbled by 6.86 per cent and Nestle Nigeria’s stock price that depreciated by  2.25per cent.

Investor sentiment, as measured by market breadth closed the same, as 23 stocks advanced, while 23 declined. DEAP Capital Management & Trust emerged the highest price gainer of 10 per cent to close at N1.32, per share. UAC of Nigeria (UACN) followed with a gain of 9.90 per cent to close at N21.65, while Dangote Sugar Refinery rose by 9.69 per cent to close at N35.10, per share.

Champion Breweries increased by 9.65 per cent to close at N3.75, while DAAR Communications added 9.26 per cent to close at 59 kobo, per share. On the other side, Custodian Investment led the losers’ chart with 8.98 per cent to close at N11.65, per share. Okomu Oil followed with a decline of 6.86 per cent to close at N338.10, while Consolidated Hallmark Holdings shed 6.62 per cent to close at N1.41, per share.

Aradel Holdings depreciated by 5.85 per cent to close at N772.00, while McNichols down by 4.93 per cent to close at N1.35, per share.

The total volume traded dipped by 10.0 per cent to 257.552 million units, valued at N8.993 billion, and exchanged in 7,776 deals. Transactions in the shares of Fidelity Bank led the activity with 38.209 million shares worth N559.084 million. United Bank for Africa (UBA) followed with account of 33.788 million shares valued at N829.613 million, while Guaranty Trust Holding Company (GTCO) traded 16.739 million shares valued at N858.279 million.

Champion Breweries traded 14.440 million shares worth N54.227 million, while Zenith Bank traded 11.593 million shares worth N436.484 million.