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Profit taking
activities by some investors have been attributed to the decline in
market capitalisation, as witnessed yesterday at the Nigerian Stock
Exchange (NSE).

The NSE market
capitalisation of the 194 First-Tier equities closed lower on Thursday
at N8.009 trillion after opening the day at N8.077 trillion, reflecting
0.84 per cent decline or N68 billion losses. The market had gained N94
billion after Wednesday’s trading session.

Olugbenga Emmanuel,
a finance analyst at WealthZone Company, an investment management firm,
said profit taking was expected following the recent upturn recorded in
the market.

“The market has
been showing mix performances in the past few weeks before it went up
last Friday. And since the recent upturn, investors, particularly the
fund managers, have been taking the little profits on their
investments,” Mr. Emmanuel said.

However, analysts
at BGL Securities, one of the stockbroking firms that recently met the
N70 million minimum capital base requirements instructed by the NSE,
said, “We advise investors to always consider fundamentals (performance
of intended equity) as they make their investment decisions.”

Low Gainers

At the close of
trading on Thursday, a total of 18 stocks appreciated in price lower
than the 45 recorded the previous day, while 34 stocks depreciated in
value, higher than the 18 of Wednesday.

Lafarge Wapco
Cement and Cement Company of Northern Nigeria topped the price gainers’
table with an increase of five per cent and 4.99 per cent, to close at
N40.98 and N11.58 per share, respectively. Transnational Corporation
and United Bank followed in the chart with an increase of 4.71 and 4.70
per cent, to close at 89 kobo and N3.34 per share.

On the losers’
side, Aiico Insurance and HoneyWell Flour Mill led on the price losers’
chart with a loss of five per cent and 4.90 per cent respectively, to
close at 95 kobo and N5.24 per share. First City Monument Bank and
Costain West Africa followed with a decrease of 4.89 and 4.87 per cent,
to close at N6.42 and N5.67 per share.

Most Active

The Banking
sub-sector maintained its lead as the most active with 111.825 million
quantities of shares, valued at N977.489 million. The sub-sector’s
volume was largely driven by shares of Zenith Bank, First Bank, and
Diamond Bank.

Trading activities
in the Insurance sub-sector was second highest yesterday, with 15.194
million shares valued at N12.346 million. Volume in the sub-sector was
boosted by deals in shares of Aiico Insurance, Lasaco Assurance, and
NEM Insurance.

Meanwhile, the
management of Union Bank, on Thursday, officially notified the Exchange
that it has recently executed a Memorandum of Agreement (MOA) with the
African Capital Alliance Consortium, the core investor selected by the
bank’s board of directors.

The bank further
stated that it will within the next few days make “a deal announcement
to advise” all concerned Union Bank’s operators of the signing of the
MOA.