The market capitalisation of listed equities on Tuesday shed N85 billion in six hours of trading to what traders attributed to profit taking as a result of the presidential poll.
Specifically, the market capitalisation, which opened at N12.194 trillion, shed N85 billion or 0.69 per cent to close at N12.109 trillion. Also, the All-Share Index lost 226.30 points or 0.69 per cent to close at 32,473.82, compared with 32,700.12 recorded on Monday.
Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the market pullback to profit taking embarked by some smart investors. Mr Omordion said the smart money that pushed the market up with expectations that the opposition would win the presidential election were leaving the market.
He said some investors who entered the market in anticipation that the opposition economic policy and reforms would support market growth were taking profit ahead of earnings season.
“This pullback may not last as a result of 2019 dividend declaration season as a dividend yield of financial service stocks is high and attractive due to low prices,” Mr Omordion stated.
Nestle dominated the losers’ chart, dropping by N70 to close at N1,510 per share.
