Stories by Nkiruka Nnorom

by the shares of oil exploration and producing giant, Seplat Petroleum Development Company Plc, Union Bank of Nigeria, UBN Plc, National Aviation Handling Company (NAHCo) and Dangote Cement Plc.

Consequently, the twin measurement indicators – the All Share Index, ASI, and the Market capitalization – rose by 0.3 percent each.

While the All Share Index rose to 30,234.72 points from 30,143.02 points, the market capitalization jumped to N10.010 trillion from the previous 9N9.979 trillion on Friday.

At the end of transaction, 18 gainers emerged as against 16 gainers in the day.

The shares of Seplat Plc led on the gainers’ table rising by five percent at the close of trading to close at N315.00, while UBN appreciated by 4.99 percent to close at N8.42 from N8.02 per share.

NAHCo followed with share price increase of 4.92 percent to close at N5.12 from N4.88 per share; Dangote Cement witnessed 4.88 percent increase to close at N166.40 from N158.65, while Pharmadeko closed as the last on top five gainers, rising by 4.67 percent to N2.24 from N2.14 per share.

On the other hand, Julius Berger led on the Laggards’ side, dropping by 9.75 percent to close at N46.95 from N52.02, while NEM Insurance, National Salt Company, NASCON Plc and Nestle Plc lost five percent apiece to close at N0.57, N6.08 and N812.25 from N0.60, N6.40 and N855.00 in that order.

Glaxosmithkline was the last on the top five losers’ chart, losing 4.98 percent to close at N40.66 from N42.79 per share.

Meanwhile, the Debt Management Office (DMO) released the first quarter provisional bond issuance calendar in the past week. . Vetiva Capital stated that the calendar suggests issuances could rise to as much as N305billion in Q1’2015 – a potential 67% QoQ and 15% Year on Year, YoY increase.

According to Vetiva, “The increase in borrowings could be associated with the need to bridge a potentially wider fiscal deficit given the pressure on government revenues. If the trend is maintained, the 2015 fiscal deficit could widen to 100 per cent of 2015 GDP, slightly higher than the 0.79% estimated in the budget proposal.

Stretching losses from the last sessions of 2014, equities kicked off 2015 on a bearish note as continued declines across weighty sectors further weighed on the Nigerian Stock Exchange, NSE All Share Index, ASI. With crude oil prices taking a further hit during the week (Brent: Below $50/bbl intraday mid-week), the sell-offs accelerated with the ASI shedding over four per cent in the first two consecutive sessions. Despite, a positive turnaround in the Consumer Goods and Financial Services sectors at week close, the ASI recorded further losses Friday due to sustained sell-offs in Industrial Goods. Overall, the index lost 13 % Week on Week , WoW to record its worst year start performance ever.

“Noting softening losses in the last sessions of the past week and the first positive market breadth in eight sessions, we expect the ASI to close in the positive in the next trading sessions as investors re-enter the market to take advantage of attractive market valuations” Vetiva stated