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Customs Street Shells 0.69% on Sustained Profit Taking

By Dipo Olowookere

The main performance indicators of the Nigerian Stock Exchange (NGX) remained bearish on Tuesday after a 0.69% loss influenced by persistent profit taking in the banking sector.

Inflationary and other pressures are forcing investors to rebalance their portfolios as they struggle to adjust to new realities.

Yesterday on Customs Street, the banking index closed down 1.31%, while the insurance sector depreciated 0.06%. The duo inflicted a loss on the exchange and weakened the impact of the 0.16% growth posted by the consumer goods counter and the 0.04% expansion printed by the industrial goods sector. The energy space closed flat during the session.

At the close of trade, the All-Share Index (ASI) fell 346.49 points to 49,644.92 points from 49,991.41 points, while the market capitalization fell 187 billion naira to slump. set at 26.778 trillion naira, up from 26.965 trillion naira on Monday.

Investor sentiment remained weak as most stocks came under selling pressure due to the need to book profits to minimize losses. A total of 18 stocks retired on the decliners’ box, while 11 stocks were on the advanced chart.

NPF Microfinance Bank recorded the highest loss as its value fell 7.83% to N1.53, Regency Assurance fell 7.69% to 24 Kobo, Livestock Feeds depreciated 5.60% at N1.18, NGX Group contracted 4.76%. at N20.00, while Zenith Bank moderated 3.57% to N20.25.

Unilever Nigeria was the biggest price gainer yesterday as its price rose 9.43% to N13.35, CAP rose 7.58% to N17.75, Chams rose 7.14% at 30 KB, Sterling Bank improved 5.48% to N1.54, while Sovereign Trust Insurance gained 3.70% to settle at 28 KB.

The activity chart was mixed on Tuesday as the volume of transactions fell by 30.82% to 139.0 million units from 200.9 million units, the value of transactions however increased by 88.50% to 2.7 billion naira from 1.5 billion naira, while the number of transactions increased by 6.82% to 4,247 transactions from 3,976 transactions the previous day.

Sterling Bank maintained its most-traded stock position yesterday after trading 18.3 million units worth N27.4 million, while Transcorp lagged with the sale of N13.2 million of units worth N14.0 million. Zenith Bank sold 12.5 million shares for N257.9 million, GTCO traded 9.2 million shares worth N183.1 million and UBA traded N7.7 million. shares for N55.2 million.