Profit-taking activities in the shares of Dangote Sugar, PZ Cussons, and Honeywell Flour mills pressured NGX CGI downward.
Shares of consumer goods companies listed on the Nigerian Stock Exchange (NGX) traded slightly lower today owing to profit-taking activities in the shares of Dangote Sugar, PZ Cussons, and Honeywell Flour mills.
The index failed to break even despite the gains in the shares of Nigerian breweries which added a total of about N6.4 billion market value to the total market capitalization of the NGX today.
Investors react to Nigerian Breweries 38.59% year-on-year growth in profit
Recall that Nigerian Breweries recently declared a 38.59% year-on-year growth in profit to N7.66 billion for the first quarter of 2021, up from the N5.53 billion profit it reported in the corresponding quarter of 2020.
Investors were quick to react to the release of Nigerian Breweries’ Q1 2021 earnings report on Friday 23rd of April, and they sustained buying interest in the shares of the company today following the 2.2% gains in the brewer’s shares on Friday.
The attendant effect of the sustained interest spiralled into a 1.96% increase in the share price of NB, with the shares of the brewery company increasing from N51.20 to N52.00.
Gains in Nigerian Breweries failed to push above losses in PZ, Honeywell, and Dangote Sugar
Despite these gains, The NGX consumer goods index declined marginally by 0.01% or -0.05 index points to close slightly lower at 558.40 index points, driven largely by the drop in the market value of PZ Cussons, Honeywell, and Dangote Sugar on the Nigerian Stock Exchange.
At the close of trade today, shares of PZ Cussons halted a four-day gaining streak, as shares of the consumer goods company lost 5 kobo to close lower today at N5.4 per share.
Shares of Honeywell Flour Mills and Dangote Sugar traded at N1.35 and N17.4 per share, lower than their respective open prices of N1.4 and N17.9 per share respectively.
The decline in their shares can be pegged on the profit-taking activities driven by the actions of bargain hunters and value investors who felt their target prices have been met.
These moves saw Honeywell shares decline by -3.57%, while the shares of Dangote Sugar declined by -2.79%.