The Nigerian Stock Exchange (NSE) equities market slide back into loss on Thursday as Investors’ cashed out their profits, especially on Insurance Stocks.
The NSE benchmark index; NSE All-Share Index dropped 48.57 points (-0.12%) to close at 41,099.15 points. The market capitalization shed N25.409 billion to settle at N21.499 trillion.
Hot and sizzling Insurance Stocks turned too hot to handle as Investors’ rushed to cash out their profits across multiple counters, driving the Index to a 6.70% loss on Wednesday. The inevitable decline was on the back of an impressive run that has seen almost all listed insurance stocks gain between 30% – 100% in 2021 alone.
Read also; Bitcoin fell below $32,000 on ‘double-spend’ report and possible ‘curtail’ by U.S lawmakers
It was a grim day for the majority of our highflyers;
- Regency Alliance Insurance Company Plc (REGALINS) lost maximum 9.52% to close at N0.38
- Transnational Corporation of Nigeria Plc (TRANSCORP) drop to N1.16 from N1.28, losing the maximum 9.38%
- Mutual Benefits Assurance Plc (MBENEFIT) lost the maximum 9.09% to close at N0.50
- Royal Exchange Plc (ROYALEX) remained unchanged at N0.44
- Champion Breweries Plc (CHAMPION) gained the maximum 9.88% to close at N1.78. The stock has now gained 10.98% YTD.
Activity level
The activity level improved as the volume of shares traded increased by 72.61 percent while the value of shares traded also increased by 38.72 percent. 1.121 billion units of shares valued at N6.397 billion was traded in 7,404 deals.
TRANCORP shares were the most traded by volume, with 428.291 million shares exchanging hands on Thursday. GUARANTY and SOVRENINS were the second and third most traded stocks by volume with 62.054 million units and 61.430 million units respectively.
Have your read? Lafarge Africa Plc divests from Continental Blue Investment Ghana Limited
Shares of Guaranty Trust Bank Plc (GUARANTY) were the most traded by value, with shares worth N2.047 billion exchanging hands in 352 deals. Shares of ZENITHBANK and WAPCO were the second and third most traded by value with shares worth N708.145 million and N620.529 million respectively.
Performance of Indices
3 of the 5 indices under our watch were bearish on Thursday, while 2 advanced.
- Industrial Index advanced by 0.27% on the back of gains in WAPCO (+5.47%)
- Oil and Gas Index advanced by 0.15% following gains in ARDOVA (+3.54%)
- Banking Index declined by 0.23% pulled down by loses in UBA (-1.65%) and UBN (-2.68%)
- Consumer Goods Index declined by 0.30% as FLOURMILL (-2.77%) and DANGSUGAR (-0.98%) recorded loses
- Insurance Index declined by 6.70% as multiple Insurance Companies recorded loses. Twelve Insurance stocks recorded maximum loses.
Investor Sentiment
Investor Sentiment as measured by market breadth weakened to 0.3x from the 3.7x recorded previously as 14 stocks advanced against 49 decliners.
Top 5 gainers by percentage are;
- MULTIVERSE gained 10.00% to close at N0.22
- NNFM gained 10.00% to close at N9.68
- CHAMPION gained 9.88% to close at N1.78
- NCR gained 9.65% to close at N2.84
- TRANSEXPR gained 9.38% to close at N1.05
Top 5 losers by percentage are;
- PRESTIGE lost 10.00% to close at N0.54
- CHAMS lost 10.00% to close at N0.27
- TOURIST lost 9.84% to close at N2.84
- MRS lost 9.82% to close at N12.40
- MANSARD lost 9.80% to close at N1.38
Outlook
Given the persistent profit taking seen on Thursday, we expect the same to dictate the direction of the market on the last trading session of the week.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
