Profit Taking Halts Stock Market’s Eight-day Price Rally

The price rally at the stock market was halted yesterday after eight days following profit taking bellwether stocks. The market has had a positive performance for eight straight days. However, the bears took over yesterday as Dangote Cement Plc, Access Bank Plc and Zenith Bank Plc depreciated.

Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell 0.10 per cent to close at 25,304.25, while market capitalisation shed N13.5 billion to close at N13.2 trillion.

A total of 19 stocks depreciated compared with 11 stocks that appreciated. Although the index was depressed by the bellwethers, Consolidated Hallmark Insurance (CHI) Plc led the price losers with 8.1 per cent.

The underwriting firm recently said its right issue of N1.056 billion was 100 per cent subscribed despite the Covid-19 pandemic.

According to the company, the successful outcome of this rights issue is a significant boost to its quest to meet the new capital regime announced by the National Insurance Commission (NAICOM).

“It is great to see investors’ confidence and trust in our company being exhibited with the full subscription of the rights offer, with several shareholders taking up their rights fully and applying for additional units at a time when investors’ appetite is dampened due to the ravaging pandemic,” Group Managing Director/CEO of CHI Plc, Mr. Eddie Efekoha had said.

He explained that the rights issue is the first in the series of steps that will put the company on the track of achieving not just its recapitalization objectives, but also the growth strategy as a group.

Fidson Healthcare Plc closed as the second highest price loser, depreciating by 7.2 per cent. LASACO Assurance Plc shed 6.0 per cent, while Livestock Feeds Plc and Chams Plc went down by 4.7 per cent and 4.5 per cent respectively.

Regency Insurance Plc and Royal Exchange Plc shed 4.2 per cent and 4.0 per cent in that order.

On the positive side, May & Baker Nigeria Plc led the price gainers with 9.8 per cent, trailed by University Press Plc with 9.4 per cent. AXA Mansard Insurance Plc chalked up 6.3 per cent.

Jaiz Bank Plc garnered 5.0 per cent, while Nigerian Breweries Plc went up 2.7 per cent. Champion Breweries Plc and NPF Microfinance Bank Plc appreciated by 2.2 per cent and 1.6 per cent respectively.

Meanwhile, activity level improved as volume and value traded rose 39 per cent and 16.5 per cent to 251.3 million shares and N1.8 billion respectively. The top traded stocks by volume were UAC Nigeria Plc (111.9 million shares), UBA (25.0 million shares) and FBN Holdings Plc (20.9 million shares).

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