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Confidence crisis worsens as share value dips further by N48bn

By Michael Eboh

….Afprint declares N130 mn loss

The liquidity crisis in the Nigerian capital market continued, Tuesday, as the value of listed equities on the Nigerian Stock Exchange (NSE) dipped by N48 billion.
This is as a result of a drastic reduction in the confidence level in the capital market, brought about by uncertainty over the fate of the remaining banks whose audits have been recently concluded by the Central Bank of Nigeria (CBN).

There are fears that some of the banks might face similar fate with the five banks taken over and whose Managing Directors were sacked by the CBN.
Meanwhile, Afrprint Plc declared a loss after tax of  N130 million in its year ended, June 30, 2009, financial result, compared with a profit after tax of N17 million recorded in its 2008 financial year, while Abbey Building Society Plc, grew its profit after tax by 94.8 per cent, in its third quarter financial result presented to the NSE.

The dip in the value of listed equities, was occasioned by decline in the share prices of listed equities, a development which dragged down the value of key market indices.
The market capitalisation dropped by 0.97 per cent to close at N4.906 trillion, from N4.954 trillion at which it opened, while the All-share index shed 209.4 basis points to close at 21,404.75 points from 21,614.15 points.

The NSE 30 index dipped by 0.9 per cent to close at 809.71 points, the NSE Food and Beverages Index dipped by 0.76 per cent to close 455.60 points, the NSE Banking index shed 1.40 per cent to close at 327.86 points, NSE Insurance Index depreciated by 1.05 per cent to close at 301.52 points, while the NSE Oil and Gas Index shed 0.08 per cent to close 299.28 points.
UAC Nigeria Plc recorded the most share price loss, dropping by N1.84 to close at N34.96 per share, okomu Oil Palm Plc followed with a loss of N1.32 to close at N25.19 per share and Unilever Nigeria Plc dipped by N0.74 to close at N15.25 per share.

On the contrary, CAP Plc recorded the most share price gain, rising by N1.32 to close at N27.91 per share, Glaxo SmithKline Consumer Plc followed with a gain of N1.02 to close at N21.76 per share and Lafarge Cement WAPCO Plc garnered N0.99 to close at N30.99 per share.
Equity trading dipped by 0.35 per cent, as a turnover of 371.19 million shares valued at N2.62 billion was recorded in 5,941 deals, in contrast to the previous day’s turnover of 372.51 million shares valued at N1.8 billion in 4,972 deals.

The Banking sub-sector dominated the other sub-sectors, accounting for 2.24 per cent of the market turnover, with 231.03 million shares valued at N1.88 billion in 3,188 deals. Zenith Bank Plc recorded the highest transactions in the sub-sector, trading 51.95 million shares valued at N540.74 million in 261 deals, United Bank for Africa Plc followed with th exchange of 39.88 million shares valued at N409.25 million in 327 deals and Access Bank Plc recorded 31.54 million shares valued at N184.53 million in 113 deals.

The Commercial/Services sub-sector followed on the sectorial analysis, accounting for 11.84 per cent of the market turnover, with 41.55 million shares valued at N28.25 million in one deal, followed by Red Star Express Plc with a turnover of 1.92 million shares valued at N4.17 million and National Sports Lottery Plc recorded 477,250 shares valued at N2.81 million in three deals.


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