June 17, 2009

Liquidity returns, share value rises by N136bn

By Michael Eboh
The era of illiquidity in  the Nigerian capital market may have been over, as investors in the secondary segment of the market have jettisoned their fear of collapse of the market, staking their funds in the exchange of equities in the Nigerian Stock Exchange (NSE).

This was even as investors staked N4.63 billion, Tuesday, in the exchange of 528.25 million shares in 11,645 deals. This was a 17.28 per cent rise from the previous day’s turnover of 450.43 million shares valued at N3.86 billion in 10,168 deals.

The two days, combined, recorded a turnover of 978.68 million shares valued at N8.49 billion. This was in addition to 1.3 billion shares traded last week and three billion shares traded penultimate week.

Following the increase in turnover recorded Tuesday, the value of listed equities, represented by the market capitalisation and All-share index, both appreciated by 2.03 per cent each. The market capitalisation which opened at N6.708 trillion rose by N136.3 billion to close at N6.844 trillion while the index closed at 30,013.26 points, rising by 597.66 basis points from 29,415.60 points.

The rise in the market indices was as a result of gains on the share prices of majority of the listed equities, with Oando Plc recording the most share price gain, rising by N4.31 to close at N90.58 per share, Nestle Nigeria Plc followed with a gain of N3.98 to close at N183.99 per share and Guinness Nigeria Plc garnered N2.00 to close at N122.00 per share.
Other share price gainers include: Benue Cement Company Plc N1.81, Flour Mills Nigeria Plc N1.52, Union Bank Nigeria Plc N0.99, UAC Property Development Company Plc N0.95, Dangote Sugar Refinery Plc N0.82, Glaxo SmithKline Consumer Plc N0.82, Ecobank Transnational Incorporated N0.75 among others.

On the contrary, Conoil Plc recorded the most share price loss, dropping by N0.85 to close at N62.00 per share, Intercontinental Bank Plc followed with a loss of N0.65 per share. Access Bank Plc shed N0.51 to close at N9.88 per share. This was following the release of its financial statement for the year ending, March 31, 2009.

The bank announced a disappointing N0.70 per share, despite posting significant growth in some of its key financial indicators.

Other share price losers include: Lafarge Cement WAPCO Plc N0.37, RT. Briscoe Plc N0.26, Jos International Breweries Plc N0.22, Presco Plc N0.20, Cutix Plc N0.16, International Breweries Plc N0.15, Deap Capital Management and Trust Plc N0.13 among others.

The Banking emerged the most active in the sectorial analysis, accounting for 51.37 per cent of the market turnover, with 270.32 million shares valued at N3.04 billion in 6,735 deals. Access Bank Plc recorded the highest transaction, trading 58.94 million shares valued at N625.7 million in 772 deals, First Bank of Nigeria Plc followed with the exchange of 31.78 million shares valued at N790.89 million in 1,488 deals and Diamond Bank Plc recorded 27.99 million shares valued at N283.24 million in 282 deals.

The Insurance sub-sector followed on the sectorial analysis, accounting for 21.46 per cent of the market turnover, with 113.35 million shares valued at N131.26 million in 1,388 deals.