By Michael Eboh & Providence Obuh
A bearish trend was recorded on the Nigerian Stock Exchange (NSE) last week, as the value of listed equities dropped by N7.23 billion.
In particular, equitiesâ€™ value, represented by the market capitalisation dropped by 0.11 per cent in the week under review to N6.361 trillion from N6.369 trillion at which it opened the week.
The All-share index, another performance indices, shed 29.78 basis points to close at 26,153.43 points from 26,183.21 points at which it opened.
However, financial expert are optimistic of a stability in the market in the weeks ahead, following the expected surge in inflow of funds from foreign investors following the economic crisis in the global community, especially in the European Union (EU).
Apprehension continue to follow reports on the debt crisis in Greece with indications emerging of a possible spread to Hungary.
This will bring about a inflow of funds to the Nigerian capital market, leading to an increase in the volume of trade and improvement in the market indices.
The decline in the NSE in the week under review was occasioned by losses on the prices of majority of the blue chip companies, led by Flour Mills Nigeria Plc, with a loss of N3.44 to close atÂ N67.06 per share, African Petroleum Plc followed with a loss of N1.85 to close at N38.10 per share and Nigerian Breweries Plc dipped by N1.39 to close at N62.91 per share.
Other share price losers include: Nigerian Bottling Company Plc N1.12, Oando Plc N1.01, Cadbury Nigeria Plc N0.90, Longman Nigeria Plc N0.81, Dangote Sugar Refinery Plc N0.80, Stanbic IBTC Bank Plc N0.75, University Press Plc N0.68 among others.
On the contrary. Mobil Oil Nigeria Plc recorded the most share price gain, rising by N16.23 to close at N174.67 per share, Total Nigeria Plc followed with a gain of N12.10 to close at N254.10 per share and Lafarge Cement WAPCO Nigeria Plc garnered N4.00 to close at N45.00 per share.
Other share price gainers include: Julius Berger Nigeria Plc N3.89, MRS Oil Nigeria Plc N3.84, Chemical & Allied Products Plc N2.76, Seven-Up Bottling Company Plc N2.25, PZ Cussons Nigeria Plc N0.82, Glaxo Smithkline Consumer (Nigeria) Plc N0.80, Eterna Oil and Gas Plc N0.75 among others.
The declining trend continued in equity trading, as a turnover of 1.8 billion shares valued at N12.15 billion was recorded in the week under review in 27,362 deals, dropping by 19.64 per cent from the previous weekâ€™s turnover of 2.24 billion shares valued at N19.1 billion in 63,394 deals.
Banksâ€™ stocks recorded the highest patronage, as trading in the sub-sector accounted for 44.67 per cent of the market turnover, with 803.97 million shares valued at N7.06 billion in 13,196 deals. Skye Bank Plc recorded the highest patronage in the sub-sector, trading 281.05 million shares valued at N2.31 billion in 605 deals, Zenith Bank Plc followed with the exchange of 129.2 million shares valued at N1.71 billion in 1,795 deals and First Bank of Nigeria Plc recorded 57.55 million shares valued at N824.48 million in 2,758 deals.
The Insurance sub-sector followed on the sectorial analysis, accounting for 16 per cent of the market turnover, with 288.74 million shares valued at N366.84 million in 1,844 deals.