In line with the recent profit taking mood on the Nigerian Bourse, more equity investors on Tuesday May 12 reduced their stake in value counters like Dangote Cement Plc, MTNN Plc, and BUA Cement Plc.
Nigeria’s stock market had opened this week on a negative note as investors continued to exchanged equities with the intention to take profit on recent gains.
Recall that the stock market had gained approximately N530billion in the trading week ended May 8.
Investors booked N133billion loss on Tuesday as supply for equities in the remote trading session failed to get corresponding demand.
Dangote Cement stocks decreased from N150 to N143.5, down by N6.5 or 4.33 percent. MTNN dipped from N112 to N111.6, losing 40kobo or 0.36percent. BUA Cement decreased from N31.9 to N31.6, shedding 30kobo or 0.94percent.
Market watchers say that with the declining activity level coupled with the negative market breadth posted on Tuesday, there is the possibility of a continued bearish pattern on Wednesday. Though, recoveries in any of the heavyweight decliners on Tuesday may support a positive close on Wednesday.
Stock market disappoints as investors chose not to price-in recent positive outlook in crude oil market after Saudi Arabia said it would unilaterally cut production by an extra million barrels a day in June. Though, Brent crude price still lowered to $29.97 as at 4:20 pm Nigerian time.
The market’s negative return year to date stood higher at -11.72 percent. This week, the market is down by -1.45 percent.
The Nigerian Stock Exchange All Share Index (ASI) decreased at the close of trading session on Tuesday May 12. It moved down by -1.06 percent to 23,695.90 points from 23,950.83 points the preceding day.
The value of listed stocks decreased to
N12.349trillion from preceding day high of N12.482trillion. In 4,005 deals, investors exchanged 155,746,430 units valued at N1.675billion.