News Column

NSE All-Share Index Sheds 0.64 Percent on Profit-Taking

July 8, 2014

Trading at the Nigerian stock market resumed on a negative note yesterday as profit-taking and losses by some highly capitalised stocks depressed the Nigerian Stock Exchange (NSE) All-Share Index by 0.64 per cent to close at 42,758.02.

Having climbed on the back of high expectations for half year results to post an impressive 2.0 per cent growth last week, some operators had envisaged the market would sustain the momentum.

However, that was not to be as some investors decided to lock in profits recorded in equities last week. Consequently, the ASI declined by 0.64 per cent, while market capitalisation shed N90 billion to close at N14.119 trillion.

But the decline of N5 or two per cent in the share price of Dangote Cement Plc alone, accounted for N85 billion reduction in the market capitalisation of the exchange yesterday. The equity closed lower at N245 per share.

Seplat Petroleum Development Company Plc led the price losers' chart in absolute terms with N18 to close at N702 per share. UAC of Nigeria Plc shed N3.63 to close at N62.37, while Forte Oil Plc declined by N2.08 to close at N198 per share.

Forte Oil has appreciated by over per cent between January and yesterday, a development that exposes the stock to high level of profit-taking. Besides, the stock last week joined the high priced stocks on the NSE.

According to the NSE, the inclusion of Forte Oil as high priced stock followed a review of trading activities of the company in the last six months which the company met the criteria set by the exchange, including trading above N100 for certain period of time.

Another stock that is experiencing profit taking is Seplat. The stock had appreciated from listing price of N576 last April to N720 last Friday. That growth translated into 25 per cent capital gain.

In all, 30 stocks appreciated compared to 23 that appreciated in value. Despite the high price losers, volume and value of trading rose by 62 and 39 per cent respectively as investors exchanged 460.229 million shares valued N4.509 billion in 5,215 deals.

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Source: AllAfrica

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