By Michael Eboh
…May & Baker records 13% dip in Q2 PAT
Equity trading on the Nigerian Stock Exchange (NSE) was driven by massive activity in the shares of United Bank for Africa (UBA) Plc, accounting for 65.09 per cent of the market turnover.
Specifically, a turnover of 852.21 million shares valued at N8.77 billion was recorded 7,185 deals, rising by 142.53 per cent from the previous dayâ€™s turnover of 351.38 million shares valued at N2.44 billion in 9,502 deals.
UBA recorded a turnover of 554.7 million shares valued at N7.14 billion in 344 deals. This represented 2.57 per cent of its total issued shares numbering 21.56 billion.
Despite the improvement in trading, the value of listed equities dipped by N83.34 billion, as the indices for measuring performances of listed equities, the All-share index and market capitalisation both dropped by 1.45 per cent each.
The index which opened at 25,004.66 points shed 363.59 basis points to close at 24,641.07 points, while the capitalisation dipped by N83.34 billion, from N5.731 trillion at which it opened to close at N5.65 trillion.
The decline in the key performance indices, according to market watchers, was a reflection of the not-too-impressive second quarter financial results of May & Baker Plc. In its second quarter ended, June 30, 2009, financial results, May & Bakerâ€™s recorded a turnover of N2.088 billion, dropping by 7.81 per cent from N2.265 billion recorded in the comparable period of 2008, Its profit before tax dipped by 12.91 per cent from N141 million in 2008 to N123 million in 2009, while its profit after tax stood at N84 million, dropping by 13.02 per cent from N96 million recorded in the comparable period of 2008.
Also, losses on the share prices of blue chip companies, contributed to the decline in the market indices, as Oando Plc recorded the most share price loss, dropping by N4.73 to close at N90.26 per share, Benue Cement Company Plc followed with a loss of N2.40 to close at N45.60 per share and Nestle Nigeria Plc dipped by N2.17 to close at N201.80 per share.
On the contrary, UAC Nigeria Plc recorded the most share price gain, rising by N0.80 to close at N37.80 per share, Ecobank Transnational Incorporated followed with a gain of N0.63 to close at N16.33 per share and Ashaka Cement Plc garnered N0.60 to close at N14.95 per share.
The Banking sub-sector driven by transactions on shares of UBA, dominated the other sub-sectors, accounting for 80.11 per cent of the market turnover, 682.73 million shares valued at N7.98 billion in 3,920 deals. Other top transactions in the sub-sector include: Skye Bank Plc, which traded 23.92 million shares valued at N131.38 million in 500 deals and FinBank Plc which recorded 22.34 million shares valued at N38.2 million in 27 deals.