The market capitalization of the Nigerian Exchange Limited (NGX) commenced trading yesterday after a two-day Christmas holiday, dropping by N238billion on the heels of investors’ profit-taking.

The market resumed trading activities yesterday after the public holidays, Monday and Tuesday December 27th and 28th, 2021 declared by the federal government to mark Christmas and Boxing Day celebration.

The All-Share Index declined by 455.75 basis points or 1.08 per cent, to close at 41,807.10 basis points. Similarly, the overall market capitalisation value lost N238 billion to close at N21.822 trillion.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; BUA Cement, MTN Nigeria Communications (MTNN), PZ Cussons Nigeria, May & Baker Nigeria and Ecobank Transnational Incorporated (ETI).

As measured by market breadth, market sentiment was slightly positive as 17 stocks gained relative to 16 losers. Union Bank of Nigeria (UBN) recorded the highest price gain of 9.91 per cent to close at N6.10, per share. Royal Exchange followed with a gain of 9.09 per cent to close at 84 kobo, while Sovereign Trust Insurance rose by 7.69 per cent to close at 28 kobo, per share.

Livestock Feeds up by 6.86 per cent to close at N2.18, while Caverton Offshore Support Group appreciated by 2.99 per cent to close at N1.72, per share. On the other hand, BUA Cement led the losers’ chart by 10 per cent to close at N67.05, per share. May & Baker Nigeria followed with a decline of 9.98 per cent to close at N4.06, while PZ Cussons Nigeria lost 8.96 per cent to close at N6.10, per share.

Jaiz Bank declined 8.06 per cent to close at 57 kobo, while UPDC Real Estate Investment Trust shed 6.25 per cent to close at N3.75, per share.

The total volume traded increased by 61.10 per cent to 180.182 million units, valued at N1.482 billion, and exchanged in 3,828 deals. Transactions in the shares of Jaiz Bank topped the activity chart with 17.652 million shares valued at N10.534 million. Union Bank followed with 16.801 million shares worth N101.826 million, while UAC of Nigeria (UACN) traded 12.884 million shares valued at N123.517 million.

Transnational Corporation of Nigeria (Transcorp) traded 11.387 million shares valued at N11.254 million, while Sovereign Trust Insurance transacted 9.999 million shares worth N2.780 million.

For this week trading, United Capital Plc stated “We note that portfolio managers typically conduct year-end rebalancing activities while attempts are made to close the year in a positive portfolio return.

“Thus, we anticipate some mild buying interest in the week. That said, we note that sellers would largely be booking profits from the prior week as well as for the year (in the case of short-term traders). Nevertheless, we expect the buying activities to outweigh sell pressures.”