Profit-taking at the stock market continued Wednesday driving the Nigerian Stock Exchange (NSE) All-Share Index (ASI) by 1.19 per cent to close at 28,093.76, while market capitalisation shed N174.4 billion to close at N14.4 trillion. The NSE ASI had gained 7.5 per cent, while market capitalisation had added N1.888 trillion in January.
However, the market has remained bearish since the beginning of this month, a trend that was sustained yesterday. Consequently, the year-to-date growth has moderated to 4.7 per cent. Losses by Dangote Cement Plc, Nigerian Breweries Plc and FBN Holdings Plc were responsible for the decline recorded yesterday.
But Conoil Plc and NASCON Allied Industries Plc led the price losers’ table with 10 per cent apiece. Double One Plc trailed with 9.9 per cent, while C & I Leasing Plc shed 9.5 per cent. Glaxosmithkline Consumer Nigeria Plc and Royal Exchange Plc shed 8.2 per cent and 7.4 per cent respectively.
Other top price losers included: Cornerstone Insurance Plc (6.6 per cent); Dangote Cement Plc ( 6.3 per cent); UAC of Nigeria Plc (5.2 per cent); UACN Property Development Company Plc (5.2 per cent); and Sovereign Trust Insurance Plc (4.7 per cent).
On the positive side, Union Bank of Nigeria Plc led the price gainers; chart with 9.8 per cent, trailed by Law Union & Rock Insurance Plc with 9.5 per cent. The financial institution recently raised N20 billion in Series 3 and 4 under its N100 billion Commercial Paper (CP) programme to finance its working capital.
According to Union Bank, the N20 billion CP followed the debut issuance of the Series 1 and 2 offering the domestic capital markets, which successfully raised N24.3 billion in January 2019.
“The CP offer is targeted at institutional investors including pension and non-pension asset managers, as well as eligible high networth investors. The new funding is expected to provide the bank with further working capital as it delivers on its promise to be Nigeria’s most trusted and reliable banking partner,” Union Bank said. Meanwhile, activity level improved as volume and value traded advanced 37.4 per cent and 40.7 per cent to 350.2 million shares and N4.3 billion respectively.
The most active stocks by volume were Zenith Bank (98.1 million shares), FBN Holding Plc (47.1 million shares) and FCMB Group Plc (41.2 million shares), while Zenith Bank Plc (N1.9 billion), Guaranty Trust Bank Plc (N396.6 million) and Dangote Cement Plc (N340.3 million) led by value.