Stock market sheds N335bn as profit-taking dominates

Equity investors embarked on profit-taking last week of stocks that gained the previous week, which pushed the market lower by 2.48 per cent.

The market opened for four trading days last week as the Federal Government declared Tuesday October 1, 2019 a public holiday to mark the nation’s 59th independence anniversary.

Meanwhile,  a  total  turnover  of  660.654  million  shares  worth  N9.189bn in  12,032  deals  were traded  last week  by  investors  on  the floor  of  the  Exchange  in  contrast  to  a  total  of  1.097  billion shares valued at N16.693bn that exchanged hands the previous week in 14,717 deals.

The  financial  services  industry  (measured  by  volume)  led  the  activity  chart  with  458.190  million shares valued at N5.905bn traded in 6,720 deals, thus contributing 69.35 per cent and 64.27 per cent to the total  equity  turnover  volume  and  value,  respectively.

The conglomerates industry followed with 55.804 million shares worth N124.513m in 545 deals.

The third place was occupied by the construction/real estate industry with a turnover of 54.330 million shares worth N62.585m in 135 deals.

Trading  in  the  top  three equities  namely,  Guaranty Trust Bank  Plc, Access  Bank  Plc  and  FBN Holdings Plc, accounted for 280.714 million shares worth N4.909bn in 2,985  deals,  contributing  42.49 per cent  and  53.43 per cent  to  the  total  equity  turnover  volume  and  value, respectively.

A total of 15 equities appreciated in price last week while 39 losers emerged, compared with the 22 gainers and 42 losers recorded during the previous week.

Analysts at Vetiva Capital Management Limited said with most bellwether stocks dipping last week and subsequently trading at their lows, discerning investors were expected to begin position taking in fundamentally sound stocks this week.

In the bonds market, a total of 4,250 units of the Federal Government bonds valued at N4.305m were traded last week in six deals, compared with a total of 36,581 units valued at N37.504m transacted the previous week in 16 deals.

<<Punch>>