By Peter Egwuatu
Equity trading on the Nigerian Stock Exchange (NSE) recorded downward trend at the end of yesterday’s (Monday) transaction with the All share index and market capitalisation dropping by 0.65 basis points each to close at 24,085.15 points and N5.90 trillion respectively.

Specifically, market capitalization which measures the worth of market investment closed lower by N38.39 billion as against N9.47 billion gain recorded on Friday to reflect weak market sentiments.

The NSE 30 which basically measures the performance of blue chips in the market dropped by 0.75%, NSE Food & Beverages closed with 0.02%, Insurance stocks slid the most as the NSE Insurance Index lost 1.06%. The NSE Banking Index was also dragged 0.42% lower by its constituent. However the NSE Oil/Gas Index, led by shares of African Petroleum, rose 0.53%.

Monday’s trading recorded drop in volume and value as low bargains came on board reflecting the persistent unconvinced attitude pervaded market recently despite attractive low prices of equities.

The weak market sentiments coupled with low commitment cut across the sectors, as NSE sectoral indexes closed with weaker positions compared with Friday’s outlook.

The planned new listings announced by the NSE and the planned Listing/Merger of the Dangote Cement Group understood to have been treated by the Quotations Committee and with an estimated valuation of N2 trillion.

Meanwhile, the banking sector led the market transaction volume with 80.51 million units valued at N610.77 million exchanged in 3,226 deals as against 141.00 million units valued at N1.07 billion exchanged in 3,138 deals recorded on Friday.

The volume recorded in the sector was driven by transaction in the shares of First Bank Plc and Guaranty Trust Bank Plc, The total volume of 20.76 million units valued at N287.37 million traded in the shares of the two stocks accounted for 9.87% of the entire market volume and their value represented 22.25% of the market’s value.

The number of gainers at the close of trading session closed lower seventeen (17) compared with thirty four (34) gainers recorded on Friday; while decliners closed higher at thirty four (34) compared with thirty one (31) losers recorded on Friday.

The price of University Press Plc was marked down for a dividend of 40 kobo, bonus 1 for 5, payment date 30th September 2010. Also, the price of NEM Insurance Plc was marked down for a dividend of 4 kobo, payment date 12th October 2010.

7up Plc recorded Profit After Tax ( PAT) growth of 23.74 per cent in its audited result released on Monday and proposed a dividend of N1.75k and bonus of 1 for 4.

John Holt Plc in its audited report released at the Exchange recorded decline of 649.74% in its Profit After Tax (PAT) and negative growth turnover of 11.63%.

DN Tyres and rubbers Plc also recorded PAT growth of 432.42% with negative turnover of -28.00%.
Meanwhile, Seven UP Bottling Company Plc, a leading bottler of fizzled drinks with the 7UP, PEPSI and MIRINDA franchises, announced its Q4 2010 financials (Year End is March) on the sidelines of trading activities that showed its turnover grow 17.80% to N41.07 billion even as stock increased 43.38% to N1.16 billion. With profit after tax rising by 23.70% to N1.89 billion, the company achieved a net profit margin was 4.61%. Shareholders’ fund increased by 12.40% to N8.97 billion while return on equity was 21.09%.