Profit taking in Dangote Cement knocks down Nigerian equities index 0. 24%

The Nigerian bourse bucked a two-day consecutive gain-run Thursday as benchmark Index fell 24bps to close 37,051.54 points whilst YTD return moderated to 37.9 percent.

Similarly, market capitalization lost N30.3 billion to close at N12.8 trillion.

The day’s negative performance was consequent on profit taking in DANGCEM (-0.9%). Barring losses in DANGCEM, market would have closed 4bps northward.

However, activity level was mixed as volume fell 9.2 percent to close at 175.8 million units while value traded rose 94.9 percent to settle at N3.5 billion.

Sector performance on the day stayed mixed as three of five indices under coverage closed in the green, while two trended southwards.

The banking index (-0.3%) led losers against the backdrop of losses in ZENITH (-1.9%) and UBA (-1.0%) while a decline in DANGCEM (-0.9%) pulled the industrial goods index 0.5 percent lower. On the contrary, the oil & gas index appreciated the most, up 1.2 percent on account of gains in MOBIL (+7.8%) and FORTE(+5.0%).

The insurance index trailed, gaining 0.3 percent due to price appreciation in CONTISURE (+4.4%). Similarly, an uptick in INTBREW (+8.4%) pushed the consumer goods index to close 0.1 percent higher.

Investor sentiment stayed flat today as market breadth (advancers/decliners ratio) closed at 0.9x relative to 0.9x recorded in the previous session. Leading the gainers’ chart were CAVERTON(+9.5%), INTBREW (+8.4%) and MOBIL (+7.8%) while LAWUNION(-4.6%), NPFMCRFBK (-4.6%) and FIDELITY (-4.1%) were today’s worst performers.

Analysts at Afrinvest attribute the day’s performance to profit taking in DANGCEM, adding that the relatively unchanged market breadth suggests investors are still sourcing for bargains. They therefore expect a positive close for the week.