The boom on the Nigerian Stock Exchange (NSE) paused Wednesday, last week, as profit takers rally on blue chip shares dragged down the performance indices, market capitalisation and the All share by 1.2 per cent.
Specifically, the capitalisation dipped by 104.77 billion to close at N8.743 trillion from N8.848 trillion at which it opened the week, while the index dropped by 327.81 bases points to close at 27,356.59 points from 27,684.40 points at which it opened.
The declining trend continued as trading plunged 1.50 per cent, with a turnover of 2.63 billion shares valued at N24.95 billion was recorded in 35,419 deals, in contrast to the penultimate week’s turnover of 2.67 billion shares valued at N27.31 billion exchanged in 35,054 deals.
The Banking sub-sector was the most active during the week, accounting for per cent of the market turnover with 1.88 billion shares valued N16.81 billion exchanged by investors in 20,403 deals. Volume in the Banking sub-sector was largely driven by activity in the shares of First Bank of Nigeria Plc trading 530.87 million shares valued at N8.49 billion in 3,741 deals, FinBank Plc followed with the exchange of 191.13 million shares valued at N229.75 million in 1,237 deals and Unity Bank Plc recorded 137.34 million shares valued at N251.88 million in 498 deals.
The Insurance sub-sector followed on the week’s activity chart accounting for 5.47 per cent, with a turnover of 144.87 million shares valued at N167.49 million in 1,834 deals.
AllCO Insurance Plc boosted activity in the sub-sector trading 38.76 million shares valued at N38 million in 1,049 deals, Custodian and Allied Insurance Plc followed with the exchange of 21.40 million shares valued at N67.71 million in 96 deals and Regency Alliance Insurance Company Plc recorded 20.08 million shares valued at N10.04 million in six deals.
There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.
IMPACT OF TRADING EXTENSION
The two hours extension of trading on the NSE revealed that the value of transactions done in the first month of the extension accounted for 50.04 per cent of the market tunover.
Interim Administrator, Emmanuel Ikazoboh disclosed this during fact behind the private placement presented by Wema Bank Plc to intimate capital market community on the recent position of the bank. He noted that market transactions from 9.30 am to 12.30 pm in the first month of the extension recorded N33.94 billion, the value of shares traded between 12.30pm and 2.30 pm was N34.00 billion.
Ikazoboh disclosed that in the month preceding the extension; the market had 108,228 deals, while deals totaling 113,342 were recorded in the first month of the extension, representing a growth of 4.73 per cent, he added that the volume recorded before the extension was 6.459 billion, the figure came to 7.463 after the extension, representing an increase of 15.55 per cent.
“Trading statistics shows that from November 6 to December 5, 2010, which is the month prior the extension, the value of market transactions was N54.44 billion, while the statistics for December 6, 2010 to January 5, 2011 which was the first full month of the extension, The Exchange recorded N67.94 billion. This represents a growth of 24.80 per cent”. According to him, “It was reported on Monday this week that The NSE topped global Indices with 11 per cent gain in the first month of this year. This is attributed to the return of investor confidence to our market”.
TOP TEN GAINERS AND LOSERS
Guinness Nigeria Plc led 39 other stocks on the losers’ table, dropping by N13.13 or 5.8 per cent to close at N214.05 per share, Oando Plc followed with a loss of N2.90 or 3.9 per cent to close at N72.10 per share and Dangote Cement Plc dipped by N1.25 or 0.95 per cent.
Other share price losers include: Nigerian-German Chemicals Plc N1.13, Guaranty Trust Bank Plc N0.95, Access Bank Plc N0.84, Diamond Bank Plc N0.72, Zenith Bank Plc N0.70, The Okomu Oil Palm Plc N0.69, Premier Paints Plc N0.67, among others.
Flour Mills Nigeria Plc led on the gainers’ table with a gain of N6.42 or 8.22 per cent to close at N84.50 per share, Nestle Nigeria Plc followed with a gain of N5.15 or 1.3 per cent to close at N410.15 per share and African Petroleum Plc garnered 3.60 or 14.91 per cent to close at N27.75 per share.
Other share price gainers’ include: Julius Berger Nigeria Plc N3.00, Northern Nigerian Flour Mills Plc N2.09, Nigerian Bottling Company Plc N1.83, Lafarge WAPCO Nigeria Plc N0.99, Honeywell Flour Mills Plc N0.84, Nigerian Bags Manufacturing Plc N0.52, Dangote Flour Mills Plc N0.51, among others.
The NSE All-Share Index depreciated by 327.81 points or 1.2 per cent per cent to close on Friday at 27,356.59 while the market capitalization of the 201 First -Tier equities declined to N8.74 trillion. The NSE-30 Index depreciated by 17.14 points or 1.41 per cent to close at 1,203.05. Last week, ASI and NSE-30 Index appreciated by 1.53 per cent and 1.5 per cent respectively
Two of the four sectorial indices appreciated during the week compared with three that so appreciated during the preceding week. The NSE Food/Beverage Index appreciated by 25.77 points or 3.05 per cent to close at 861.90, the NSE Insurance Index appreciated by 1.68 points or 0.94 per cent to close at 186.29, while the NSE Banking Index depreciated by 19.21 points or 4.21 per cent to close at 443.46 and the NSE Oil/Gas Index depreciated by 1.59 points or 0.41 per cent to close at 362.12.