By Chinwendu Obienyi
Proceedings at the Nigerian Exchange Limited (NGX) went southward as sell pressure in the shares of Eternal Oil, Cutix and Wapco drove the market indices down by 0.15 per cent. Buying interest in bellwether stocks had seen the market’s All Share Index (ASI) gain 0.12 per cent on Wednesday with market capitalisation rising by N25 billion to close at N20.303 trillion.
However, the bears resurfaced yesterday in the market, leading to the ASI dropping 0.15 per cent to close at 38,911.31 points while market capitalisation fell by N30 billion to close at N20.273 trillion.
According to data obtained from the NGX’s website, trading activity weakened as the volume and value of stocks traded fell 7.9 per cent and 52.0 per cent to 130.2 million units and N1.4 billion respectively. Performance was bearish across sectors as 4 indices lost, 1 gained, while the AFR-ICT index closed flat. The Oil & Gas and Consumer Goods indices led the laggards, down 0.6 and 0.4 per cent respectively due to price depreciation in Eterna Oil (-9.4per cent), and Honeywell flour (-3.9per cent).
Similarly, the Banking and Industrial Goods indices dipped 0.3 per cent and 0.1 per cent respectively on the back of sell-offs in UBN (-3.0 per cent), and WAPCO (-2.2 per cent). Meanwhile, the Insurance index was the lone gainer, up 0.5 per cent due to bargain hunting in Sovereign Insurance (+4.2 per cent). Commenting on the performance of the market, Afrinvest, said, “we expect profit-taking sentiment to be extended in the absence of any positive catalyst”.