By Chioma Obinagwam
The upward trend which began on the Nigerian Stock Exchange(NSE) since Monday was halted by sustained profit-taking by investors.
The Daily official list of the NSE showed that the NSE All-Share index- a major indicator of the Nigerian bourse showing the changing average value of the share prices of all companies on the NSE, which is used as a measure of how well a market is performing, shaved 0.35 per cent to settle at 39,031.72 basis points (bps).
Market Capitalisation followed the same pattern shedding 0.35 per cent from the N14.19 trillion it gained on Tuesday, to settle at N14.14 trillion on Wednesday.
Reacting to the downward(bearish) trend, analysts at Afrinvest said: “…We expect to see increased profit taking on Thursday as investors free up cash for the holiday season. Nevertheless, we believe market return for the week will be positive given the gains recorded earlier in the week.”
So far, the NSE All-Share index has recorded a 1.6 per cent gain Week to Date, 4.85 per cent loss Month to Date and a 2.1 per cent gain Year to Date.
Japaul Oil and Maritime Services has maintained its stance on the gainers’ table adding 2 kobo more or 5.88 per cent to its 34 kobo opening price to close at 36 kobo.
Reacting to the consistent rally on Japaul Oil’s stock, Stock broker and Chief Relationship Officer at Foresight Securities, Charles Fakrogha said: ” It’s just a mechanism of demand and supply. The share is undervalued, hence , decerning investors are taking position in the stock.”
Trailing Japual Oil and Maritime Services is UACN Property Development Company, which gained 10 kobo or 4.98 per cent to settle at N2.11 whereas Prestige Insurance chalked 3 kobo or 4.92 per cent.
On the flip side, Diamond Bank led other share price decliners’ after shaving 8 kobo or 5 per cent from its N1.60 opening price to close at N1.52.
Aiico Insurance plunged by 3 kobo or 4.62 per cent even as Unity Bank dipped by 4 kobo or 4.35 per cent.
Meanwhile, investors transacted a total of 456.49 million shares valued at N4.13 billion in 3,517 deals.
As today’s trading session begins, the market is expected to trend further downwards going by analysts projections on the heels of increased sell-offs as the forces of demand and supply play out in the market.