Nigerian stocks dip as investors book profit

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The all-share index fell 0.12 per cent.

Nigerian stocks fell 0.12 per cent as investors took profit in newly admitted BUA Foods, which had garnered over 59 per cent until the end of last week when gains began to plateau.

Ahead of an analyst call due on Tuesday, BUA Foods issued its earnings report for the nine months to September, which shows after-tax profit at N16.6 billion. That translates to a price-to-earnings ratio of 67.2 at the close of business on Monday, meaning the stock is significantly overvalued and is trading high above its real value.

“We expect the market to sustain its bullish momentum as investors continue to position themselves ahead of the dividend season amidst profit-taking activities off high-performing stocks,” analysts at brokerage firm and investment bank United Capital said in their forecast note for this week seen by PREMIUM TIMES.

Eterna rose to N6, notching up 6.95 per cent in the process. Wapic added 6.25 per cent to end trade at N0.51. Consolidated Hallmark completed the top 5, climbing by 4.48 per cent to N0.70.Veritas Kapital led losers, declining by 8.70 per cent to close at N0.21. Mutual Benefits shed 7.41 per cent to close at N0.25. Cornerstone fell to N0.51, losing 7.27 per cent.

 

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